Abstract
The main purpose of this paper is examining the dynamics of electricity demand in the Iranian agricultural sector paper using empirical evidence over the period 2003-2014. The paper uses Panel cointegration test and Fully Modified Ordinary Least Squares method to determine the long run relationship between agricultural electricity consumption, agricultural GDP, real price of electricity, domestic price of diesel as substitute good and mechanization index (a number of electrified pumps of water wells). The results show that electricity demand is more responsive to changes in agriculture value added (income) than changes in prices. Results also indicated that price elasticity is negative and significant but low in magnitude, which implies that changes in electricity price apply minimal effect on the electricity consumption agricultural sector.

Keywords
electricity demand, agricultural sector, Dynamic panel data, Iran

Cite this paper
Mohsen Mohammadi Khyareh, Estimating the Demand for Electricity in Agriculture Sector of Iran , SCIREA Journal of Agriculture. Volume 1, Issue 2, December 2016 | PP. 143-155.

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