Impact of Renewable Energies on Green Economy

Subject Areas : Renewable Energy

Somayeh Daneshvari ¹ , Parvaneh Salatin ² , Mohammad khalilzadeh ³

1 - MSc, Department of Industrial Engineering, Faculty of Engineering, Science and Research Branch, Islamic Azad university, Tehran, Iran.
2 - Assistant Professor, Department of Economics, Firoozkooh Branch, Islamic Azad University, Firoozkooh, Iran *(Corresponding Author).
3 - Assistant Professor, Department of Industrial Engineering, Faculty of Engineering, Science and Research Branch, Islamic Azad university, Tehran, Iran.

Received: 2018-10-17 Accepted : 2018-05-05 Published : 2020-02-20

Keywords: green economy, greenhouse gases, renewable energies, Panel data,

Abstract :

Background and purpose: As the world's population grows and energy resources are limited, all countries face energy problems. The crises that threaten countries and communities are the lack of non-renewable sources of energy (fossil fuels), as well as the increase of environmental pollution caused by excessive consumption of fossil fuels which shows the necessities and importance of using renewable energy resources. The close link between the economic and environmental issues has raised new approaches to the field of international environmental law, one of the most prominent of which is the green economy, and since one of the main goals of the green economy is reducing greenhouse gas emissions, the use of renewable energy sources is a quick way to achieve a green economy. In this regard, the main objective of this study is to review the comparative effect of renewable energy on green economy in two groups of selected countries that produce and consume renewable energy with high and middle income. Methodology: This study is an applied research and inferential research method. The method and tool for collecting information and statistical resources are written documents, electronic information and taking notes. Findings: The results of model estimation in the selected countries with Fixed Effects Method during the period of 2005-2016 showed that the use of renewable energy has a negative and significant effect on carbon dioxide emissions as an indicator of the green economy in the selected countries. Also, the effect of renewable energy on the green economy in the group of selected middle income countries is higher than that of high-income countries. Other results showed that economic growth and openness had a positive and significant impact, human capital, ICT and rule of law had a negative and significant impact on carbon dioxide emissions as an indicator of green economy in the group of selected countries. Discussion and Conclusion: Renewable energies are clean, abundant and reliable and if properly developed, can play a significant role in achieving sustainable development goals as sustainable sources of energy. The main reason for the emphasis on the use of renewable energies, in addition to helping to solve environmental problems and preventing the loss of fossil fuels, is the conservation of natural resources for future generations, which undoubtedly renewable energy, given their simplicity of technology, plays a significant role in the green economy and sustainable economic development.

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