Economic growth and energy consumption in Iran: an ARDL approach including renewable and non-renewable energies

Vahid Mohamad Taghvaee, Clever Mavuka and Jalil Khodaparast Shirazi

MPRA Paper from University Library of Munich, Germany

Abstract: Iran experiences a high level of energy consumption which is threatening not only economically but also politically and environmentally. This study aims to estimate the relationship between the economic growth with the various kinds of energies, non-hydroelectric, renewable, non-renewable, and total energies in Iran during 1967–2012, using an autoregressive distributed lags (ARDL) model. The results show the ineffective relationship between the economic growth and energy consumption in Iran, considering non-hydroelectric energy, renewable energy, non-renewable energy, and total energy, one by one as the energy proxy. It implies the ineffectiveness of both the quantitative and qualitative deflationary policies over the energy sector. In another word, neither decreasing energy consumption nor changing energy portfolio affects the economic growth. Therefore, the policy makers are advised to formulate those policies which reduce the quantity of energy consumption or increase the segment of renewable energies in the portfolio of energy consumption because they do not lead to the considerable negative consequence on the economic growth, while they increase both the environmental quality and energy security.

Keywords: Economic growth; Energy consumption; Renewable energies; Non-renewable energies; Iran (search for similar items in EconPapers)
JEL-codes: Q4 (search for similar items in EconPapers)
Date: 2016
New Economics Papers: this item is included in nep-ara, nep-ene and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Journal Article: Economic growth and energy consumption in Iran: an ARDL approach including renewable and non-renewable energies (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:74323

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