The Relationship between Renewable Energy Consumption and Economic Growth: Insights from Iceland and Azerbaijan

Shafa Aliyev, Ramil I. Hasanov, Khanim Aghayeva, Javadkhan Y. Gasimov and Sadagat E. Ahmadova
Additional contact information
Shafa Aliyev: Sumgait State University, Sumgait, Azerbaijan; & Azerbaijan State University of Economics (UNEC), Baku, Azerbaijan; & Western Caspian University, Baku, Azerbaijan
Ramil I. Hasanov: Western Caspian University, Baku, Azerbaijan; & Azerbaijan Technological University, Ganja, Azerbaijan
Khanim Aghayeva: Western Caspian University, Baku, Azerbaijan
Javadkhan Y. Gasimov: Nakhchivan State University, Nakhchivan, Azerbaijan
Sadagat E. Ahmadova: Nakhchivan State University, Nakhchivan, Azerbaijan

International Journal of Energy Economics and Policy, 2024, vol. 14, issue 5, 229-235

Abstract: Iceland leads globally in per capita green energy production, while oil-dependent Azerbaijan endeavors to transition its energy policy towards sustainable alternatives. Investigating the impacts of renewable energy consumption on the economy represents a significant contemporary scientific inquiry. The objective of this research is to empirically examine the causal relationship between GDP per capita, a key metric of economic growth, and renewable energy consumption, a fundamental aspect of the green economy. In this research, the Toda-Yamamoto causality test framework of the vector autoregressive (VAR) model was utilized to examine the causal relationship between the variables. The outcomes of this investigation reveal a significant causality between renewable energy consumption and economic growth in Iceland and Azerbaijan.

Keywords: Renewable Energy Consumption; Economic Growth; Toda-Yamamoto Causality Test; Iceland; Green Economics; Sustainability (search for similar items in EconPapers)
JEL-codes: C22 O13 Q43 Q50 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.econjournals.com/index.php/ijeep/article/download/16490/8139 (application/pdf)
https://www.econjournals.com/index.php/ijeep/article/view/16490 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eco:journ2:2024-05-23

Access Statistics for this article

International Journal of Energy Economics and Policy is currently edited by Ilhan Ozturk

More articles in International Journal of Energy Economics and Policy from Econjournals
Bibliographic data for series maintained by Ilhan Ozturk ().