Relation between Renewable Energy, Energy Consumption and Economic Growth in Iran

Bahman Khanalizadeh and Soheila Khoshnevis Yazdi

AENSI Journals
Advances in Environmental Biology
ISSN-1995-0756 EISSN-1998-1066
Journal home page: http://www.aensiweb.com/AEB/

Article history:
Received 4 September 2014
2014 Received in revised form 24 November
Accepted 8 December 2014
Available online 16 December 2014
Keywords:
Economic Growth, Energy
Consumption, Renewable Energy,
ARDL, Iran

A B S T R A C T

This study examines the correlation between economic growth, carbon dioxide, renewable energy, energy consumption and population for the period 1975-2010, using time series (ARDL, VECM model and Granger causality) to the economy of Iran. ARDL approach demonstrates that emissions of carbon dioxide and renewable energy are positively correlated with economic growth. The model also shows that the population has a negative effect on growth. The Granger test has relationship unidirectional causality between economic growth and renewable energy consumption. Four Granger causalities are running from CO2 emissions, renewable energy, energy consumption and population to GDP

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