Quarterly Publication

Application of Panel Data Seemingly Unrelated Regression in Consumption of Hydrocarbon Energy Carriers

Document Type : Original Article

Authors

1 Ph.D Student, Department of Economics, Central Tehran Branch, Islamic Azad University, Tehran, Iran

2 Assistant Professor, Department of Economics, Central Tehran Branch, Islamic Azad University, Tehran, Iran.( Corresponding Author

3 Assistant Professor, Department of Economics, Central Tehran Branch, Islamic Azad University, Tehran, Iran

4 Department of economics, Central Tehran Branch , Islamic Azad University , Tehran , Iran.

Abstract
In this study, consumption datas of hydrocarbon energy carriers in Iran during the years 1982-2017 were collected. A seemingly unrelated regression (SUR) model in balanced panel data approach was proposed It can be beneficial to control energy demand. Results revealed that in the residential-commercial sector indicate that the consumption of hydrocarbon energy carriers with lag has a positive effect and the weighted average price of petroleum energy carriers includes a negative impact on the consumption of hydrocarbon energy carriers. In the industry sector, consumption of hydrocarbon energy carriers with lag includes a positive impact on the usage of hydrocarbon energy carriers, and the weighted average price of petroleum energy carriers has a negative effect on the consumption of hydrocarbon energy carriers. In the agriculture sector, the variables of energy intensity, value added of the agriculture sector, population and consumption of hydrocarbon energy carriers with lag have a positive impact on the usage of hydrocarbon energy carriers in this sector. In the transportation sector, gross domestic product, extremity of energy usage in the transportation part and consumption of hydrocarbon energy carriers with lag include a positive impact on the usage of hydrocarbon energy carriers in this sector and has a negative impact on the consumption of hydrocarbon

Keywords

Subjects

Abdul Mottaleba, Khondoker., and Rahut, Dil Bahadur. (2021). Clean energy choice and use by the
urban households in India: Implications for sustainable energy for all. Environmental Challenges,
5, 1–13.
54 Petroleum Business Review, Vol. 7 (2023), No. 3
Amiri, A., and Fakhari, H. (2020). Financial reporting and Auditor comment with simultaneous
equations approach. Audit knowledge, 27–58.
Anik, Asif Reza., and Rahman, Sanzidur. (2021). Commercial Energy Demand Forecasting in
Bangladesh. Energies, 14(19), 1–22.
Breusch, T., and Pagan, A.. (1980). The LM Test and Its Applications to Model Specification in
Econometrics. Review of Economic Studies, 47, 239–254.
Fadaee, Mehdi., and Veisi, Shahla. (2021). Energy Intensity, Ownership Structure and Industrial
Concentration in Iran’s Manufacturing Industries. Quarterly Journal of Energy Economics, 69,
197–229.
Ghader, S. F., Azadeh, A., and Mohammdzadeh, Sh.. (2006). Modeling and forecasting the electricity
demand for major economic sectors of Iran. Information Technology Journal, 5(2), 260–266.
Greene, William. H.. (1989). Econometric Analysis. 7th, Pearson, 335–338.
Hadiana, Ebrahim., Ostadzadb, Ali Hossein. (2021). Steady State Behavior of the Iranian Economy
with Stochastic Energy Resources. Iranian Journal of Economic Studies, 10(1), 31–55.
Haghighat, J., and Mousavi, S. (2015). Applied Econometrics. Publication of light science.
Hashemi, H., Mohammadi, T., Khalili, F., and Farid A. (2019). Estimation of demand for petroleum
products by state-space model and the implications for their price liberalization. Quarterly Journal
of Economic Studies Energy, 5(61), 1–28.
He, L., Ding, Z., Yin, F., and Wu, M. (2016). The impact of relative energy prices on industrial energy
consumption in China: a consideration of inflation costs. SpringerPlus, 45.
Kialashaki, A., and Reisel, R. (2013). Modeling the energy demand of the residential sector in the
United States using regression models and artificial neural network. Applied Energy, 108, 271–
280.
Kialashaki, A., Reisel, R. (2014). Transport energy demand modeling of the United States using
artificial neural networks Multiple Linear Regressions. 8th International Conference on Energy
Sustainability collocated with the ASME, the international conference on fuel cell science,
engineering and technology, and the American Society of Mechanical Engineers.
https://doi.org/10.1115/ES2014-6447.
Kim, S.N., Choo, S., and Mokhtarian, P.L. (2015). Home-based telecommuting and intrahousehold
interactions in work and non-work travel: a seemingly unrelated censored regression approach.
Part A Policy Pract, 80, 197–214.
Li, J., and Just, E. (2018). Modeling household energy consumption and adopting energy-efficient
technology. Energy Economics, 72, 404–415.
LIM, c. (2019). Estimating Residential and Industrial City Gas Demand Function in the Republic of
Korea—A Kalman Filter Application. Sustainability, 11, 1–12.
Mao, C. (2016). Growth, income inequality, and capital income taxes: evidence from a seemingly
unrelated regression model on panel data. Economics Bulletin, 36, 3, 1463–1478.
Oluwadare, Ojo. O., Oluremi, Owonipa R., and Lateifat, Enesi. O. (2020). A Simulation Study of
Bayesian Estimator for Seemingly Unrelated Regression under Different Distributional
Assumptions. Asian Journal of Probability and Statistics, 10(4), 1–8.
Boroomandfar, P. et al. / Application of Panel Data Seemingly Unrelated … 55
Ozturk, Ilhan. (2017). Measuring the impact of alternative and nuclear energy consumption, carbon
dioxide emissions and oil rents on specific growth factors in the panel of Latin American
countries. Progress in Nuclear Energy, 100, 71–81.
Royal, Saransh., Singh, Kamaljit., and Chander, Ramesh. (2022). A nexus between renewable energy,
FDI, oil prices, oil rent, and CO2 emission: panel data evidence from G7 economies. OPEC
Energy review, https://doi.org/10.1111/opec.12228.
Sadrzadeh Moghadam, S., Sadeghi, Z., and Qudsollahi, A. (2013). Estimation of energy demand
function and price elasticity and substitution of inputs in the industry (regression of seemingly
unrelated equations SUR). Quarterly Journal of Environmental and Energy Economics, 2( 6),
107–127.
Salimian, Salah, and Shahbazi, Kiumars. (2017). Iran’s Strategy in Utilizing Common Resources of Oil
and Gas: Game Theory Approach. Iranian Journal of Economic Studies, 6( 2), 185–202.
Tianxiang, L., and Xu, W. (2019). Using Panel Data to Evaluate the Factors Affecting Transport Energy
Consumption in China’s Three Regions. Int J Environ Res Public Health, 16( 4), 555.
Varahrami, Vida., and Kolivand, Fattaneh. (2020). Survey Environmental Effects of Emotion of
Pollutions on Economic Growth Respect to Human Development Index in Oil Countries.
Quarterly Journal of Environment and Supersector Development, 89( 6), 50–61.
Xu, Xuecai., Saric, Zeljko., Zhu, Feng., and Babic, Dario. (2018). Accident severity levels and traffic
signs interactions in state roads: a seemingly unrelated regression model in unbalanced panel data
approach. Accident Analysis Prevention, 122–129.
Zellner, A. (1962). An efficient method of estimating seemingly unrelated regression equations and test
for aggregation bias. Journal of American Statistical Association, 57, 348–368.
Zhao, X., Li, N., and Ma, C. (2012). Residential energy consumption in urban China: A decomposition
analysis. Energy Policy,41 (C), 664–653.
Ziaabadi, M. and Zare Mehrjerdi, M. (2019). Factors Affecting Energy Consumption in the Agricultural
Sector of Iran: The Application of ARDL-Fuzzy. International Journal of Agricultural
Management and Development, 9( 4), 293–305.

  • Receive Date 11 May 2022
  • Revise Date 17 April 2023
  • Accept Date 25 April 2023