Structural break, energy consumption and value added of the agricultural sector in Iran

Purpose of this article was to study energy consumption due to importance of energy in developing and promoting Human societies, role of energy demands at policies and decision making associated with production, distribution and supply as well as energy importance as an effective factor at agricultural production. According to new econometrics discussions, Presence or absence of structural breaks and regime change could effect on relationship between economic variables and ignoring it may lead to Misleading results, hence Presence of structural breaks and regime change at empirical relationship between energy consumption and value added growth is important at agricultural sector. So in this article, relationship between energy consumption and value added growth at agricultural sector have been studied using annual time series data on Iran's economy during (1967–2012) with emphasis on Structural break. In this regard, Zivot and Andrews Unit Root Test in endogenous from was used to determine structural changes and Gregory-Hansen co-integration test was used to determine long-term relationship between energy consumption and value added growth with emphasize on structural break. Finding showed that there was long-term relationship between energy consumption and value added growth at agricultural sector.