The two-Stage Estimation of Energy Consumption Function in Iran industry; Based on Logic Model

Knowledge of energyconsumption has many uses in industry. Factors that are energy dependent have already been studied hence decision
making on them are easier. Energy demand studies of industry helps us
to learn factors that are responsive to this demand. Therefore planners
can use these collected data in their decision making using the above
factors. Another use of energy demand can be used as a tool in the
aforementioned study. In our current study, energy consumption in
industry as a whole or in parts is the focus of our attention. Therefore a
two stage procedure is used. In the first stage total consumption of
energy, and in the second stage the energy consumption is broken down
into detailed components. These components are natural gas, oil
products, coal and electricity. In many of similar studies, translog
function is used as a cost function. In this study, along with examining
this function, logic function is also used. The reasons for not using
translog function is the estimation of first and second stages of energy
demand using the logic function. Also the properties of logic model and
procedure of forecasting are distinct and conclusive result of this paper