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

Author

Listed:
  • Mohamad Taghvaee, Vahid
  • Mavuka, Clever
  • Khodaparast Shirazi, Jalil

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.

Suggested Citation

  • Mohamad Taghvaee, Vahid & Mavuka, Clever & Khodaparast Shirazi, Jalil, 2016. "Economic growth and energy consumption in Iran: an ARDL approach including renewable and non-renewable energies," MPRA Paper 74323, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:74323
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    References listed on IDEAS

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    1. Mohamad Taghvaee, Vahid & Seifi Aloo, Alireza & Khodaparast Shirazi, Jalil, 2016. "Energy, Environment, and Economy Interactions in Iran with Cointegrated and ECM Simultaneous Model," MPRA Paper 70508, University Library of Munich, Germany.
    2. Omri, Anis, 2013. "CO2 emissions, energy consumption and economic growth nexus in MENA countries: Evidence from simultaneous equations models," Energy Economics, Elsevier, vol. 40(C), pages 657-664.
    3. Omri, Anis & Nguyen, Duc Khuong & Rault, Christophe, 2014. "Causal interactions between CO2 emissions, FDI, and economic growth: Evidence from dynamic simultaneous-equation models," Economic Modelling, Elsevier, vol. 42(C), pages 382-389.
    4. Wang, Lei & Xu, Linyu & Song, Huimin, 2011. "Environmental performance evaluation of Beijing's energy use planning," Energy Policy, Elsevier, vol. 39(6), pages 3483-3495, June.
    5. Mohamad Taghvaee, Vahid & Hajiani, Parviz, 2015. "Environment, Energy, and Environmental Productivity of Energy: A Decomposition Analysis in China and the US," MPRA Paper 70057, University Library of Munich, Germany.
    6. Mohamad Taghvaee, Vahid & Hajiani, Parviz, 2014. "Price and Income Elasticities of Gasoline Demand in Iran: Using Static, ECM, and Dynamic Models in Short, Intermediate, and Long Run," MPRA Paper 70054, University Library of Munich, Germany.
    7. repec:ipg:wpaper:2014-542 is not listed on IDEAS
    8. Boudri, J. C. & Hordijk, L. & Kroeze, C. & Amann, M. & Cofala, J. & Bertok, I. & Junfeng, Li & Lin, Dai & Shuang, Zhen & Runquing, Hu & Panwar, T. S. & Gupta, S. & Singh, D. & Kumar, A. & Vipradas, M., 2002. "The potential contribution of renewable energy in air pollution abatement in China and India," Energy Policy, Elsevier, vol. 30(5), pages 409-424, April.
    9. Houri Jafari, H. & Baratimalayeri, A., 2008. "The crisis of gasoline consumption in the Iran's transportation sector," Energy Policy, Elsevier, vol. 36(7), pages 2536-2543, July.
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    Cited by:

    1. Jalil Khodaparast Shirazi & Vahid Mohamad Taghvaee & Mohamad Nasiri & Abbas Assari Arani, 2020. "Sustainable development and openness in oil-exporting countries: green growth and brown growth," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 9(1), pages 1-19, December.
    2. Vahid Mohamad Taghvaee & Jalil Khodaparast Shirazi & Mohamed Amine Boutabba & Alireza Seifi Aloo, 2017. "Economic Growth and Renewable Energy in Iran," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 21(4), pages 789-808, Autumn.
    3. Zahra Nasrollahi & Mohadeseh-sadat Hashemi & Saeed Bameri & Vahid Mohamad Taghvaee, 2020. "Environmental pollution, economic growth, population, industrialization, and technology in weak and strong sustainability: using STIRPAT model," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(2), pages 1105-1122, February.

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    More about this item

    Keywords

    Economic growth; Energy consumption; Renewable energies; Non-renewable energies; Iran;
    All these keywords.

    JEL classification:

    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy

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