%0 Journal Article %T On The Relationship between Energy Consumption and Real GDP on Iran: An Application of VEC Mode %J Iranian Economic Review %I University of Tehran %Z 1026-6542 %D 2006 %\ 04/01/2006 %V 11 %N 16 %P 141-148 %! On The Relationship between Energy Consumption and Real GDP on Iran: An Application of VEC Mode %R 10.22059/ier.2006.30946 %X 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. %U https://ier.ut.ac.ir/article_30946_82aa58e959a7ca9c8ff3feb3e3db3064.pdf