The Investigation of Renewable Energy Effects on Iranian Per Capita Real Economic Growth

Abstract

Development of renewable energy would help to achieve the goals of economic, social and ecological development which are considered as the most important factors in achieving sustainable development in each country. This article examines the impact of real economic growth per capita on the country's clean energy deals during the period 1967-2012 in Iran. To this end, the pattern Auto Regressive Distributed Lag (ARDL) and Co-Integration method are employed to determine the presence of short and long-term relations among the variables. The results show that the speed of adjustment is relatively high error correction model and the model is able to adjust the 61% of short-term imbalance error, to achieve long-run equilibrium. According to the corresponding estimations, the relationship between real economic growth per capita and renewable energy consumption, combustible renewable and waste consumption and electrical energy consumption in both short-term and long-term is negative. Also Long-term results have showed a significant negative relationship between electrical energy consumption, renewable energy consumption combustible renewable and waste consumption and real economic growth per capita. So, in long- term, increasing one percent consumption of the mentioned variables, cause to decrease the real economic growth per capita to 0.71, 0.72 and 0.79 respectively.

Keywords

• economic growth
• renewable energy
• auto-regressive distributed lag model (ardl)
• iran