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

Vahid Mohamad Taghvaee; Clever Mavuka; Jalil Khodaparast Shirazi

doi:10.1007/s10668-016-9862-z

Environment, Development and Sustainability

pp 1–16

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

Authors
Authors and affiliations

Vahid Mohamad Taghvaee
Clever Mavuka
Jalil Khodaparast ShiraziEmail author

Article

First Online:: 27 September 2016

Received:: 31 May 2016
Accepted:: 17 September 2016

DOI: 10.1007/s10668-016-9862-z

Cite this article as:: Taghvaee, V.M., Mavuka, C. & Shirazi, J.K. Environ Dev Sustain (2016). doi:10.1007/s10668-016-9862-z

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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 growthEnergy consumptionRenewable energiesNon-renewable energiesIran

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Authors and Affiliations

Vahid Mohamad Taghvaee
- 1
Clever Mavuka
- 2
Jalil Khodaparast Shirazi
- 3
Email author

1.Customs Administration of IranBushehrIran
2.Tongji Institute of Environment for Sustainable DevelopmentShanghaiChina
3.Department of EconomicsIslamic Azad UniversityShirazIran

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

Abstract

Keywords

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