The Impact of Urbanization on the consumption renewable and non-renewable energies in selected Developing countries

Subject Areas : Renewable Energy

yazdan naghdi ¹ , soheila kaghazian ² , maryam lashkarizadeh ³

1 - Assistant Professor in Economics, West Tehran Branch, Islamic Azad University, Iran.
2 - Assistant Professor in Economics, West Tehran Branch, Islamic Azad University, Iran.
3 - Assistant Professor in Economics, West Tehran Branch, Islamic Azad University, Iran.

Received: 2020-09-15 Accepted : 2021-07-14 Published : 2022-01-21

Keywords: Renewable and nonrenewable energies, consumption, Urbanization, Generalized Method of Moments (GMM),

Abstract :

Background and Objective: Given the rapid expansion of urban society and increasing energy consumption in developing countries, it is necessary to examine the relationship between urbanization and energy consumption. The purpose of this study is to investigate the relationship between urbanization and the consumption of renewable and non-renewable energy in selected developing countries. Material and Methodology: In this research, the effect of urbanization rate on renewable and non-renewable energy consumption will be investigated using the Generalized Method of Moments (GMM) method and using two models. This study was conducted for 44 countries for the period 1996-2018. Estimation of the models has been done with Stata software. The research model was adopted from the linear Salim model. Finding: According to the results of this study, every 10% increase in urbanization rate leads to a 1% increase in renewable energy consumption in developing countries. While every 10 percent increase in urbanization rates will increase the consumption of non-renewable energy in these countries by 4.2 percent. Therefore, in developing countries, the impact of urbanization rates on non-renewable energy consumption is greater than renewable energy. Discussion and Conclusion: The reason for more renewable energy consumption in developing countries is the greater dependence of heating and public and private transportation in developing countries on non-renewable energy, which must be changed gradually. This also indicates the low awareness and knowledge of the population about consumption patterns and also the low level of technology in these countries.

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