on the relationship between energy consumption and real gdp on iran: an application of vec mode

this paper examines the causal relationship between energy use and real gdp for the period 1967-2002 in iran. the results of phillips- perron test indicate that the real gdp and the four categories of energy, i.e. coal, oil, gas, and hydroelectric energy are integrated of order one. besides, the johansen — juselius maximum likelihood co- integration tests imply the existence of granger causality. the vec models that have been estimated to test the direction of granger causality support a unidirectional causality from gdp to energy use in short run.