| Summary: | Final energy consumption and CO2 emissions in Iran increased by 67% and 81% between 2001 and 2011, respectively. The question is, what factors have been the drivers of energy consumption in this time interval? In order to answer this question, we use structural decomposition analysis and index decomposition analysis. The results indicate that the economic activities stimulate energy consumption. Energy intensity has acted as a deterrent to energy consumption and production technology changes have not been able to act as a deterrent to energy consumption. Among the final demand components of the input-output table, household sector is the most important driver of energy consumption. Exports, investment expenditures, and government expenditures are the most important drivers after household expenditures, respectively. Focusing on the household sector, promoting exports in industries with less energy consumption, trying to move towards renewable energy, and improving production technology can help control final energy consumption in Iran. The results of this study are important for energy and environmental policymakers in controlling energy consumption and CO2 emissions.
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