Investigating the impact of globalization on energy intensity in Iran

To obtain a master's degree in the field of economics, economic sciences

December 2013

Abstract

Globalization can be considered a process in which the economic borders between countries become less and less and the ever-increasing mobility of resources, technology, goods, services and capital and even human resources across borders. It is easier. As a result, this phenomenon leads to an increase in production and consumption in countries. The movement of developing countries towards the creation of an open economic space and integration into the global economy involves various changes and results, one of the most important changes being in the field of energy. Considering that energy consumption in the world is increasing in order to speed up the process of industrialization and globalization of many countries and in order to achieve higher economic growth; Examining the relationship between globalization and energy intensity is important. In this regard, the aim of this study is to examine the impact of global­ Energy intensity in Iran, using the ARDL method and during the period of 1358-1390. The results of this study show that globalization has a positive and meaningful effect on energy intensity, so that An increase in this variable is associated with an increase in energy intensity. On the other hand, energy efficiency and the price of energy carriers have a negative relationship with energy intensity, which shows that increasing energy efficiency and the price of energy carriers reduces energy intensity. Also, per capita production has a negative and significant effect on energy intensity, which indicates that with the increase in production, energy intensity decreases. Chapter 1: Overview of the research The process of globalization is comprehensive and has economic, political, social and cultural dimensions. But because its economic dimension has direct effects on the lives of different societies, the economic dimension has a central position in the examination of globalization. With the expansion of the globalization process, the ratio of some issues with this concept has changed and these issues need a new understanding and interpretation for organization and revival; One of these fields is the energy field. Considering that energy consumption in the world is increasing in order to speed up the process of industrialization and globalization of many countries and in order to achieve higher economic growth; Therefore, examining the impact of globalization on energy intensity can provide very useful information to policymakers in the macroeconomic and energy fields. Also, energy as one of the most important factors of production and as one of the most essential final products has a special place in the country's economic growth and development. Considering the close relationship between energy consumption and economic growth in Iran, determining the quality and quantity of the relationship between these two variables can help in explaining the policies of the energy sector. Although more energy consumption indicates more development, energy intensity must be reduced for sustainable development. Therefore, examining the impact of globalization on energy intensity can provide very useful information to policymakers in the macroeconomic and energy fields. Considering the increasing importance of energy and energy indicators as a result of the development of international trade, this study aims to investigate the effects of globalization on energy intensity in Iran, using time series data of 1358-1390. For this purpose, in this chapter, the general aspects of the research have been examined. In recent years, the word "globalization" has been one of the most widely used words in the field of economic, cultural, and political policies of domestic and international countries, as well as the subject of academic and journalistic discussions. Globalization can be considered a process in which the economic borders between countries become less and less, and the increasing mobility of resources, technology, goods, services, capital and even human resources across borders becomes easier, and as a result, it leads to an increase in production and consumption in countries. The experience of the last decade shows that the movement of developing countries towards creating an open economic space and integration into the global economy has brought different results.A number of these countries have managed to reach higher economic growth rates by making proper use of the provided facilities and are currently among the newly industrialized countries. Of course, in most cases, higher economic growth requires the use of more inputs, among which the role of energy is of particular importance.

In terms of the close connection of energy with the daily life of people and societies, as well as the life of countries, it has constantly worried the applicant governments and the producing governments, and that is why energy has found a decisive role in national and international policies, and patterns of competition, cooperation, It has shaped conflict, aggression, interaction, convergence and divergence in the international arena and relations between countries and governments. One of the most important changes in the field of energy in recent decades is a significant reduction in the energy intensity of the developed countries of the world. Between 1997 and 2007, the energy intensity of the member countries of the Organization for Economic Cooperation and Development, [1]OECD, has decreased by 14.4%, the Group of Seven[2] by 15%, and the United States by 18.8% (Department of Energy Information[3], 2009). However, energy consumption in developing countries has more than quadrupled in the past three decades and it is expected that this increase will continue in the future. Therefore, the process of globalization in developed countries is accompanied by an increase in energy intensity, and it is necessary to further investigate this effect and investigate its reasons. Therefore, in the present research, the impact of some important factors affecting energy intensity, such as globalization, energy efficiency, and the price of energy carriers in the period (1358-1390) is investigated. 1-3- Necessity and importance. Research

A look at the trend of energy intensity in developing countries reminds us of the need to pay more attention to this variable and examine the factors affecting it. In calculating the intensity of final energy consumption based on purchasing power parity,  Iran does not have a favorable situation in terms of energy consumption to produce goods and services and is considered one of the countries with very high energy intensity. Based on this, the intensity of final energy consumption in the country is not only much higher compared to oil-rich countries, but also higher than some regions such as Africa and the Middle East. Another noteworthy point is that the comparison of energy intensity in Iran and the world  In 2010, it indicates that in the case of the country of Saudi Arabia, this index increased by 128.32  Tons of crude oil equivalent per million dollars, China was 147.48, Iran 184.85, the whole world 115.14, America 89.62, India 111.52, Japan 73.08 and Turkey 77.3.[4] In other words, globally, on average, 115.14 tons of crude oil equivalent of energy have been consumed to produce one million dollars of added value, while this figure in Iran was more than 1.6 times the global average. In general, the decrease in energy intensity in the countries of North America, Europe, Africa, Eurasia, and Asia Pacific, along with the increase in energy intensity in the Middle East, South America, and Central America, should be examined more closely. One of the possible reasons for the increase in energy intensity in the Middle East could be the transfer of energy industries from the countries of the first group to countries with rich energy reserves in this region. Therefore, the scientific and rational examination of economic parameters to optimize the use of existing resources and increase the economic value created can be a solution to reduce energy intensity. But none of these studies have investigated the relationship between globalization and energy intensity in Iran. Considering the macroeconomic policies of the government based on increasing economic growth and active presence in the field of world trade, a correct understanding of the relationship between energy intensity and globalization can help policymakers in formulating appropriate economic policies and energy sector planners in formulating and implementing those policies and optimizing energy consumption to achieve sustainable economic growth and development. Reducing energy intensity is considered one of the development goals of policy makers and economic planners of any country. Because lower energy intensity shows lower cost or price for converting energy into production in the economy. Achieving this goal is only possible by understanding how different factors influence and providing thoughtful solutions.