Bootstrap causality test regarding the causal interactions between trade openness, new energy consumption and economic growth
Subject Areas : Renewable Energy
sara mehri
1
,
Hosein Sharifi
2
,
saees daeikaramzadeh
3
1 - PhD student in the field of economic sciences, Isfahan Branch (Khorasgan), Islamic Azad University, Isfahan, Iran
2 - Associate Professor, Department of Economic Sciences, Isfahan Branch (Khorasgan), Islamic Azad University, Isfahan, Iran.
3 - Associate Professor, Department of Economic Sciences, Isfahan Branch (Khorasgan), Islamic Azad University, Isfahan, Iran.
Keywords: Degree of trade openness, New energy consumption, Economic growth, Bootstrap causality test, Environment, development sustainability.,
Abstract :
Background and Objective: Energy is always considered as one of the important factors of economic growth and development. But today, the use of traditional sources of energy and fossil fuels is associated with doubts due to various reasons, including the emission of greenhouse gases, as well as their limited and exhaustible nature. It is the direction of economic growth.
Material and Methodology: For this purpose, the bootstrap causality test was used based on the annual data of selected developed countries and developing countries during the period of 2002-2020.
Findings: Based on the results of Granger bootstrap test, there is causality from the side of new energy (EC) to economic growth (Y) and vice versa, as well as from the side of trade (TO) to economic growth (Y) and vice versa in selected developed countries. When the rate of economic growth increases significantly, increasing pressure is placed on resources. In this regard, the demand for capital and advanced equipment is increasing and since it is possible to exploit any of the resources in these countries, therefore, along with the increase in economic growth, the increase in the consumption of new energy is not far from the mind. But the causality in the selected developing countries is one-way and from the variable side of new energy to economic growth, and the causality from the side of economic growth to new energy is established only in the countries of China and Brazil.
Discussion and conclusion: In developing oil exporting countries such as Iran and Russia, the reason for the absence of a significant relationship between the production and consumption of new energy is due to the existence of huge oil and gas resources that cause excessive use and waste of energy. In oil countries, due to the abundance of energy resources, the motivation for optimal use is low, and most importantly, the price of energy in these countries usually does not change in the direction of global balances.
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