Payame Noor University Economic Growth and Development Research 2228-5954 7 25 2016 12 21 Explaining The Effect of Economic Growth and Energy Market Integration on Energy Consumption in Iran: Using Generalized Method of Moments Explaining The Effect of Economic Growth and Energy Market Integration on Energy Consumption in Iran: Using Generalized Method of Moments 85 96 2589 FA Mohammad Hossein Ehsanfar Assistant Professor, Department of Economics, Payam-e-Noor University, Tehran, Iran Journal Article 2016 01 04 Energy is a basic need to continuity in economic development, supplying and providing welfare and comfort in human life. Due to the limitation and scarcity of resources and also considering the extended role and importance of energy in countries’ growth and economic development, determining the effective elements on energy demand is of a special importance. There have been many studies on energy demand in Iran. But this study has taken a different approach<span lang="FA" dir="RTL">.</span> <br />This study deals with both the effect of energy market integration and the effect of economic growth on energy consumption in Iran’s economy during 1975 to 2014, using generalized method of moments. In this study, empirical results showed that integration of energy market and economic growth has significant positive effects on energy consumption. Also the price elasticity of energy demand in all models indicate the low elasticity in Iran’s economy during the mentioned years. Income elasticity has been estimated larger than one in final models. Energy is a basic need to continuity in economic development, supplying and providing welfare and comfort in human life. Due to the limitation and scarcity of resources and also considering the extended role and importance of energy in countries’ growth and economic development, determining the effective elements on energy demand is of a special importance. There have been many studies on energy demand in Iran. But this study has taken a different approach<span lang="FA" dir="RTL">.</span> <br />This study deals with both the effect of energy market integration and the effect of economic growth on energy consumption in Iran’s economy during 1975 to 2014, using generalized method of moments. In this study, empirical results showed that integration of energy market and economic growth has significant positive effects on energy consumption. Also the price elasticity of energy demand in all models indicate the low elasticity in Iran’s economy during the mentioned years. Income elasticity has been estimated larger than one in final models. https://egdr.journals.pnu.ac.ir/article_2589_09c7e427b7b72903c3a9f8592a602803.pdf