Payame Noor University Economic Growth and Development Research 2228-5954 11 44 2021 09 23 Estimating Electricity Demand in the Iindustrial Sector of Iran and Examining its Role in Economic Growth Estimating Electricity Demand in the Iindustrial Sector of Iran and Examining its Role in Economic Growth 136 121 7851 10.30473/egdr.2021.57056.6113 FA Ali Changi Changi Ph.D. in Economics, Payame Noor University Hadi Ghaffari Associate Professor of Economics, Payame Noor University Journal Article 2021 01 05 ABSTRACT:<br />one of the indicators that is currently considered in determining the level of development of a country is the amount of electricity consumption and its applications.Providing the needs of the industrial sector for energy,especially electricity, is undeniable and very important and is very effective in the process of growth, development and economic stability.<br />In this study,using time series data and aggregate techniques in econometrics, especially dynamic auto regressive distributed lag models (ARDL) and error correction mechanism (ECM), long-term and short-term relationships of electricity demand model of the industrial sector are estimated. Based on the obtained results,The price elasticity of demand in the industrial sector is equal to 0.453 and it indicates that with a one percent increase in the price of electricity,the amount of demand decreases by 0.453 percent.Therefore, electricity is a low-elastic commodity, This means that the industrial sector is dependent on electricity and other energies cannot be a suitable alternative to it.The results show that all coefficients are significant at the levels of 5 and 10 percent. <br />Also, the results show that the demand for electricity has an important role in the production of the industrial sector and ultimately the country's GDP, so that an increase of 1 unit (ten thousand kilowatt hours) in electricity consumption in the industrial sector can increase GDP by about 23,660 dollars.<br /><br />Keywords: Electricity Demand of Industrial Sector, Price of Energy Carriers, ARDL. ABSTRACT:<br />one of the indicators that is currently considered in determining the level of development of a country is the amount of electricity consumption and its applications.Providing the needs of the industrial sector for energy,especially electricity, is undeniable and very important and is very effective in the process of growth, development and economic stability.<br />In this study,using time series data and aggregate techniques in econometrics, especially dynamic auto regressive distributed lag models (ARDL) and error correction mechanism (ECM), long-term and short-term relationships of electricity demand model of the industrial sector are estimated. Based on the obtained results,The price elasticity of demand in the industrial sector is equal to 0.453 and it indicates that with a one percent increase in the price of electricity,the amount of demand decreases by 0.453 percent.Therefore, electricity is a low-elastic commodity, This means that the industrial sector is dependent on electricity and other energies cannot be a suitable alternative to it.The results show that all coefficients are significant at the levels of 5 and 10 percent. <br />Also, the results show that the demand for electricity has an important role in the production of the industrial sector and ultimately the country's GDP, so that an increase of 1 unit (ten thousand kilowatt hours) in electricity consumption in the industrial sector can increase GDP by about 23,660 dollars.<br /><br />Keywords: Electricity Demand of Industrial Sector, Price of Energy Carriers, ARDL. https://egdr.journals.pnu.ac.ir/article_7851_8c57844093680359f9ce0f8f5d1c80ff.pdf