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Manuscript ID : JEST-1705-3646 (R5) Visit : 166 Page: 395 - 407

10.22034/jest.2020.27377.3646

Article Type: Original Research

Investigation of Interrelationship between Renewable Energy- Sustainable Development- Co2 Emmision in Iran: Bayesian VAR Approach

Subject Areas : Sustainable Development

Davood Behboudi 1 , Parviz Mohammadzadeh 2 , Soha Moosavi 3

1 - Professor, Economic Development and Planning Departement, Faculty of Economics, Management and Business, Tabriz University
2 - Associate Professor, Economic Development and Planning Departement, Faculty of Economics, Management and Business, Tabriz University
3 - PhD, Economic Development and Planning Departement, Faculty of Economics, Management and Business, Tabriz University *(Corresponding Author)

Received: 2017-05-27 Accepted : 2017-12-05 Published : 2020-04-20

Keywords: Renewable energy, Sustainable development, CO2 emission, Bayesian vector auto regression (BVAR),

Abstract :

Background and Objective: Due to the limitation of fossil energy resources and problems caused by greenhouse gas emissions, it is essential to focus on renewable energy resources, because it can be used to achieve sustainable development goals. Thus, the purpose of this research is to investigate relations among renewable energy, CO2 emissions and sustainable development and compared to non-renewable energy in Iran.  Method: In this study, dynamic interrelationships in the sustainable development-energy- CO2 emissions nexus is examined by applying bayesian vector autoregression (BVAR) in Iran over the period 1980-2013. Gross Domestic Product (GDP) is the indicator commonly used to measure economic growth and sustainable development, but this indicator is inefficient for evaluating development. One of the most prominent alternative indicators for sustainable development is the Index of Genuine Savings (GS). For this purpose, in this study GS is used as an indicator of sustainable development. Findings: Results reveal that the impact of creating positive shock on renewable and non-renewable energy consumption on sustainable development in Iran is positive. Also, positive shock on renewable and non-renewable energy consumption causes an increase in CO2 emission. Moreover, the impact of an increase in sustainable development is positive on renewable energy consumption and is negative on non-renewable energy consumption. Discussion and Conclusion: It is suggested that policy makers prioritize the promotion of energy supply diversification policies, especially renewable energy.  

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  1. Baris, K., Kucukali, S., 2012. Availability of renewable energy sources in Turkey: Current situation, potential, government policies and the EU perspective. Energy Policy, vol. 42, pp. 377-391.
    2.
  2. Lotfalipour, M.,  Mahdavi Adeli, M., 2016. Study on the Relationship between Energy Consumption, Economic Growth and Export Industry in Iran (Analysis Based on Panel Data). Economic Growth and Development Research, Vol. 6(24), pp. 17-38. (In Persian)
    3.
  3. Taklif, A., Mohammadi, T., Bakhtiar, M., 2016. Development of Renewable Energy and it’s Role on the Future of Power Sector in Iran. Economic Growth and Development Research, Vol. 7(25), pp. 147-159. (In Persian)
    4.
  4. Omri, E., Chtourou, N., Bazin, D., 2015. Solar thermal energy for sustainable development in Tunisia: The case of the PROSOL project. Renewable and Sustainable Energy Reviews, vol. 41, pp. 1312-1323.
    5.
  5. Maji, I.K., 2015. Does Clean Energy Contribute to Economic Growth? Evidence from Nigeria. Energy Reports, vol. 1, pp. 145–150.
    6.
  6. Elahi, SH., Gharibi, J., Majidpoor, M., Anvari, A., 2015. The Diffusion of Renewable Energy Technologies: Grounded Theory Approach. Innovation Management, vol. 4(2), pp. 33-56. (In Persian)
    7.
  7. Mezghani, I., Haddad, H. B., 2016. Energy consumption and economic growth: An empirical study of the electricity consumption in Saudi Arabia. Renewable and Sustainable Energy Reviews, vol. 75, pp. 145-156.
    8.
  8. Apergis, N., Payne, J. E., 2012. Renewable and non-renewable energy consumption-growth nexus: evidence from apanel error correction model, Energy Economics, vol. 34, pp. 733-738.
    9.
  9. Antonakakis, N., Chatziantoniou, I., Filis, G., 2017. Energy consumption, CO2 emmissions and economic growth: An ethical dilemma. Renewable and Sustainable Energy Reviews, vol. 68, pp. 808-824.
    10.
  10. Gaspar, J., Marques, A. C., Fuinhas, J. A., 2017. The traditional energy-growth nexus: A comparison between sustainable development and economic growth approaches, Ecological Indicators, vol. 75, pp. 286-296.
    11.
  11. Belaid, F., Yussef, M., 2017. Environmental degradation, renewable and non-renewable electricity consumption, and economic growth: Assessing the evidence from Algeria. Energy Policy, vol. 102, pp. 277-287.
    12.
  12. Amri, F., 2016. The relationship amongst energy consumption, foreign direct investment and output in developed and developing Countries. Renewable and Sustainable Energy Reviews, vol. 64, pp. 694-702.
    13.
  13. Cowan, WN., Chang, T., Inglesi-Lotz, R., Gupta, R., 2014. The nexus of electricity consumption, economic growth and CO2 emissions in the BRICS countries. Energy Policy, vol. 66, pp. 359-68.
    14.
  14. Sebri, M., Ben-Salha, O., 2014. On the causal dynamics between economic growth, renewable energy consumption, CO 2 emissions and trade openness: fresh evidence from BRICS countries. Renewable and Sustainable Energy Reviews, vol. 39, pp. 14-23.
    15.
  15. You, J., 2011. China’s energy consumption and sustainable development: Comparative evidence from GDP and genuine savings. Renewable and Sustainable Energy Reviews, vol. 15, pp. 2984-2989.
    16.
  16. Fetros, M., Aghazadeh, A., Jabraili, S., 2012. Study on the Relationship between renewable and non-renewable energy on Economic Growth in developing countries. Energy Economics Review, vol. 9(32), pp. 51-72. (In Persian)
    17.
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  19. World Bank., 2006. Development Economics Dept. Development Data Group, & World Bank. http:www.siteresources.worldbank.org/ESSDNETWORK/Resources/LGDB2006.pdf.
    20.
  20. Sahebhonar, H., Nadri, K., 2014. The Economic Analysis of the Oil Revenues Increase Impact on Income Distribution with a BVAR Approach: Case Study of Iran. Iranian Energy Economics, vol. 3(9), pp. 115-149. (In Persian)
    21.
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    22.
  22. Selover, D., Round, D., 1996. Business cycle transmission and interdependance between Japan and Australia. Journal of Asian Economics Elsevier, vol. 7(4), pp. 562-602.
    23.
  23. Lange, K., 2010. Advanced Optimization Topics. Numerical Analysis for Statisticians. Springer New York, pp. 297-332.
    24.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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