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Investigating the Effect of Using Oil, Natural Gas and Coal on Economic Growth of Iran

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  • Naser Ali Yadolahzade Tabari

    (Department of Economic, Babol Branch, Islamic Azad university, Babol, Iran.)

  • Fateme Nazari

    (Department of Economic, Babol Branch, Islamic Azad university, Babol, Iran.)

  • Maryam Shafiee Kakhki

    (Department of Economic, Babol Branch, Islamic Azad university, Babol, Iran.)

Abstract

The purpose of this study is to investigate the role of oil, natural gas and coal consumption in Iran’s economic growth during the periods from 1980 to 2012. The stationary analysis is performed by using ADF and Phillips-Perron unit root test and Auto-Regressive Distributed Lag (ARDL) approach was used to test for co-integration between the variables. The findings show that the variables are cointegrated; it means there is a long-run equilibrium relationship between the consumption of energy and economic growth. Accordingly the consumption of natural gas and coal was concluded to have positive and significant effect on economic growth, while the consumption of petroleum shows no significant effect on economic growth.

Suggested Citation

  • Naser Ali Yadolahzade Tabari & Fateme Nazari & Maryam Shafiee Kakhki, 2015. "Investigating the Effect of Using Oil, Natural Gas and Coal on Economic Growth of Iran," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 19(1), pages 17-27, Winter.
    • Handle: RePEc:eut:journl:v:19:y:2015:i:1:p:17
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    References listed on IDEAS

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    Keywords

    ARDL method; Coal; Gas; Oil.;
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