Effect of Renewable Energy Consumption and Commercial Opening on Iran's Economic Growth

Fakour, Ali; Bi-Ria, Soheila; Rahimifar, Azar

doi:10.22044/rera.2022.12224.1167

Document Type : Original Article

Authors

¹ Department of economy, PhD student in economics, international economics, Isfahan University, Isfahan, Iran.

² Member of the faculty of the Office of Higher Education Extension, Ministry of Science, Research and Technology, Iran.

https://doi.org/10.22044/rera.2022.12224.1167

Abstract

countries need to use energy resources to achieve economic growth, but due to the limitation of fossil energy resources such as oil and coal, the increase in the price of these resources in recent years, as well as the resulting environmental pollution, the countries concerned The use of clean and renewable energy sources has increased. Considering the importance of using renewable energy for the sustainable economic growth of the country in the coming years and the novelty of this topic in domestic studies, therefore, in this research, the impact of renewable energy consumption on the growth of Iran's GDP has been investigated.The innovation of this research compared to previous studies is the use of influential variables such as fixed capital formation, employment rate, trade openness and sanctions in addition to the variable of renewable energy consumption on the country's economic growth. In fact, in this study, the investigated model has been expanded with effective variables according to Iran's economy, which has not been addressed in previous studies. We considered time series for variables including renewable energy consumption, GDP per capita, capital formation, employment rate, trade openness, and sanctions for the time period 2010–2020. In this research, the vector autoregression model with distributed intervals (ARDL) has been used to estimate the relationship between variables. The results show that there is a positive and significant relationship between renewable energy consumption, fixed capital formation, employment rate, trade openness and GDP growth, and sanctions have had a negative and significant impact on GDP growth.

Keywords

20.1001.1.2717252.2023.4.2.8.9

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Effect of Renewable Energy Consumption and Commercial Opening on Iran's Economic Growth

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Volume 4, Issue 2July 2023Pages 235-242

Volume 4, Issue 2
July 2023
Pages 235-242