Investigating relationship between power consumption and economic growth in Iran during 1966–2010

As an important production factor, power consumption can have an influential role in economic growth. Regarding the close relation between power consumption such as electricity and economic growth, investigating this relation in Iran is of particular importance. Explaining this relationship helps country`s power policies substantially. Thus, it is tried in this article to examine the relationship between power consumption and economic growth in Iran during 1966–2010 using Granger causality as well as error correction model (ECM). Results show that there is no relation from economic growth to power consumption in short and long term, while power consumption results in economic growth in short and long term.