The Investigation of Energy Rebound Effect on the Value Added of Industry Sector in Iran

The Rebound effect refers to the reactions that occur to the advancement of technology and the increase of energy efficiency, and these reactions prevent the achievement of the desired goal completely. In this study, in order to investigate the effect of energy return on the value added of Iranchr(chr(chr('39')39chr('39'))39chr(chr('39')39chr('39')))s industrial sector, first by estimating the production function by the ordinary least squares (OLS) method and using Divarge logarithmic mean index (LMDI) return effect in industry and for years It has been calculated from 1987 to 2017. The results indicate that the energy recovery effect of industry in the period under study has been declining. In order to achieve the main goal of the research and using the distributed interruptive autoregression (ARDL) method, the effect of energy return on the value added of the industry has been investigated. The estimation results indicate that in the short and long term there is a negative and significant relationship between the return effect and value added of the industry. But the relationship between industrial capital investment and value added is positive and significant. On the other hand, the return effect has a greater effect on value added than capital, which is greater in the long run than in the short run. The error correction factor (ECM) is -0.47, which indicates that in the event of an economic shock in the current period, 0.47 will be adjusted from the imbalances of the previous period.