Investigation of Factors Affecting Energy Consumption in Iran (with Emphasis on Financial Development Variable)

For many years, the issue of climate pollution has been seriously addressed and has involved the minds of politicians, statesmen and even the general public. Hence, we decided to study the relationship between energy consumption, financial development, economic growth, energy prices, and urbanization during the 1970- 2016 period by applying the Boundary Test Approach and applying it to Distributed Layer Automation Models (ARDL). The results indicate the positive impact of financial development index, economic growth and urbanization, and the negative impact of long-term oil prices on energy consumption. Also, in the short term, there is a causal relationship between financial development and energy consumption, so the results indicate the need for policy makers to invest in increasing financial development in the country, so that the investment will take place in order to utilize the new energy technology. So that the country can meet the growing demand for energy and control the pollution of the environment.