The effect of globalization on energy consumption in developing country: Accurate quantitative regression

The present study investigates the effect of globalization on energy consumption in developing countries including Iran for the period 2000 to 2018 in the form of a quantile panel regression approach. For this purpose, the KOF index was used as a globalization variable. The index, KOF, includes real trade flows such as trade, foreign direct investment and portfolio investment, as well as trade barriers such as restrictions and tariffs on real flows. The results of this study show that in low energy consumption quantiles, the effect of globalization on energy consumption has been positive and significant;  But at high levels of energy consumption, the impact of globalization on energy consumption has gradually diminished. Also in high energy consumption quantiles, the effect of GDP on energy consumption has decreased, the effect of financial development and capital formation on energy consumption has gradually decreased and the effect of foreign investment on energy consumption has gradually decreased. According to the research results, it is necessary to take steps in the field of sustainable development by adopting and implementing rational policies consistent with the role of energy in the trade sector and provide the ground for economic growth and development.