Economics Research

Abstract In this paper, we surveyed the most important quantitative factors that influence energy productivity in Iran’s large manufacturing industries over the 1999-2003. A few models were run by using pooling data technique, covering manufacturing units at two digit level of ISIC classification. The results obtained indicate that factors such as capital/ energy ratio (K/E), real cost capital, labor/ energy ratio (L/E), real wages and electricity used/ total energy ratio are most influential factors affecting energy productivity, respectively. Productive engineering labor as percentage of total productive labor which was taken as a proxy for technology has had positive and meaningful effect on energy productivity. In addition, in view of present trend relative energy prices didn’t have meaningful effect on energy productivity.