Investigation of Temperature Variation Effects on Natural Gas Consumption in Iran

Natural gas consumption growth rate in Iran over the past decade has been usually over than the world wide consumption. As temperature variation has an inevitable effect on raw material consumption which supplies thermal and cooling energies in different areas of the society so in this research we are going to investigate the temperature effects on different sectors of natural gas consumption such as domestic, industrial, agricultural, power plant, public, commercial and transportation in different Iran´s provinces in order to establish a unique model for our country. On the other hand, panel data regression among the other methods of econometrical analysis with combination of Cross Sectional and Time-Series data, increase degree of freedom and consequently improving efficiency of estimated model. In accordance with varieties of techniques in the field of panel data regression, in this research, after gathering data and considering 25 provinces as cross-sections (i) and 24months as time-series (t), in order to analyze the influence of temperature on each consumption sectors, a specific process has been applied to select suitable panel data regression model. Finally the correlation between consumption and temperature in every seven consumption fields are analyzed.