The Estimation of Gap Consumption of Domestic Electricity Power in High Consumption Provinces

Document Type : applicative

Authors

1 Associate Professor, Department of Economics, Public Affairs, Kharazmi University, Tehran, Iran.

2 M.A student in Energy Economics, Kharazmi University, Department of Economics, Faculty of Economics, Tehran, Iran.

10.30473/jier.2025.58798.1257

Abstract

Electricity is one of the most widely used energy carriers, with relatively high accessibility. Consequently, its global usage is steadily increasing, and among the various consumption sectors, the residential sector ranks as one of the highest consumers. This study aims to introduce the concept of spatial econometrics using panel data from 20 provinces across the country. It presents practical models based on this technique and estimates the gap in residential electricity consumption through the Spatial Durbin Model (SDM), selected using the Wald test. The time period used in this study is from 2006 to 2018 (corresponding to 1385 to 1397  in the Iranian calendar).  The results of this study confirm its hypotheses, indicating that electricity prices have a statistically significant negative effect on residential electricity consumption across provinces. Analyzing the efficiency of electricity use in the residential sector (where high-consumption provinces exceed optimal usage levels) can provide valuable insights for policymakers. These findings may support the development of more effective services for households and promote more accurate use of finite energy resources.

Keywords

Main Subjects

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Journal of Industrial Economics researches
Volume 9, Issue 31
September 2025
Pages 93-112

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History

  • Receive Date: 26 April 2021
  • Revise Date: 01 July 2025
  • Accept Date: 31 August 2025

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