The Survey of Effective Factors on the Diesel Consumption in Iran by Using the ARDL Co-integration Approach

This research attempts to examine the effect of real price of diesel, the real price of petrol, amount of production and import of diesel vehicles, population rate, and level of electricity generation in the diesel plants on the demand function of Diesel during the period 1976-2009 in Iran. The research uses a logarithmic model and finally employs the ARDL approach to estimate the model. The results of ARDL and ECM estimation imply that the real income, real price of petrol, level of electricity generation, population and level of production and import of diesel vehicles have positive and significant while the real price of Diesel has a negative and significant effects on the demand function of Diesel . The results of ECM test also show a high adjustment velocity of the demand function in the country. Thus, accordingly it is suggested that considering the non-price factors, creating a organized and appropriate basis of databases in the energy sector, pursuing the reduction policies of fuels usage which is come with high efficiency such as giving incentives to the private sectors to the transportation sector, training the drivers and repairers, building the Authorized repair shops by the auto makers.