The Effect of Electricity Consumption Shocks on Environmental pollution and Economic Growth in Iran and Selected Countries MENA: A Comparative Comparison with the PVAR Approach

Subject Areas : Environmental Economics

mohammad hasan ghazvinian ¹ , kambiz hojabr kiani ² , ali dehghani ³ , fatemeh zandi ⁴ , khalil saeedi ⁵

1 - Ph.D of Economics, Islamic Azad University, Tehran South Branch, Tehran, Iran. .
2 - Professor of Economics, Islamic Azad University, Science and Research Branch of Tehran
3 - Assistant Professor of Economics, Islamic Azad University, South Tehran Branch, Tehran, Iran.
4 - Assistant Professor of Economics, Islamic Azad University, South Tehran Branch, Tehran, Iran.
5 - Assistant Professor of Economics, Islamic Azad University, South Tehran Branch, Tehran, Iran

Received: 2019-04-14 Accepted : 2020-10-03 Published : 2021-12-22

Keywords: Environmental pollution, Electricity Consumption, selected countries of MENA, Economic growth, Iran's economy,

Abstract :

Background and Objective: Production, including industrial and agricultural production, is not possible without the existence of economic infrastructure. Electricity plays an important role in the industrial development of countries due to changes in the industries and the conversion of mechanical to electrical power, the emergence of electric motors and the development of machine tools. Purpose of this article, comparative comparison of the effects of electricity consumption shocks on Environmental pollution and economic growth in IRAN and selected MENA countries.Material and Methodology: The article is descriptive, analytical and inferential, to achieve this goal, the method has been used the PVAR approach during the period 2016-1992 as well as the country of Iran during the period 2016-1985 using the VAR method has been studied.Findings: Findings: Electricity consumption, direct foreign investment, labor force and capital inventory have a direct and significant relationship with economic growth, but environmental pollution has a negative and significant relationship with Iran's economic growth. Discussion and Conclusion: the results indicate that the shock of increasing electricity consumption in selected MENA countries after an insignificant decrease in GDP per capita will increase proportionally in subsequent periods but in Iran, it grows very smoothly. The effect of this shock on carbon dioxide emissions in the countries concerned has been relatively mildly reduced, but in Iran, carbon dioxide emissions have been at a higher level than before.

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