THE EFFECTS OF ENERGETIC TRANSITION ON ECONOMIC GROWTH IN IRAN

Year 2017, Volume: 1 Issue: 1, 77 - 93, 15.03.2017

Nathalie Hılmı Alain Safa Shekoofeh Farahmand Majid Sametı Salahaldin Sassan

Abstract

In this paper, we study the effects
of renewable energy consumption on economic growth in Iran in the period 1983
to 2013, through Autoregressive Distributed Lag (ARDL) method. Results show
that an increase in renewable energy consumption increases economic growth. In
other words, there is a positive and statistically significant relationship
between renewable energy consumption and economic growth. The results show that
in the long-run 1% increase in consumption of renewable energy leads to 4.06%
increase in economic growth; they also show that in a short-run, 1% increase in
it also can lead to 7.5% increase in economic growth. 

Keywords

Renewable Energy Consumption, Economic Growth, Autoregressive Distributed Lag Method

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