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Energy Consumption and Sustainable Economic Welfare: New Evidence of Organization of Petroleum Exporting Countries

Author

Listed:
  • Somayeh Azami

    (Department of Economics, Razi University, Kermanshah, Iran.)

  • Shabnam Almasi

    (Department of Economics, Razi University, Kermanshah, Iran.)

Abstract

This paper examines the relationship between energy consumption and sustainable economic welfare in Organization of Petroleum Exporting Countries. Initially, the index of sustainable economic welfare (ISEW) is calculated followed by an investigation of the relationship between energy consumption and sustainable economic welfare in these countries. The calculation of the ISEW reveals the most important beneficial component and the most important cost component of ISEW is adjusted personal consumption and energy depletion, respectively. The estimated results based on the Westerlund (2007) test and considering cross-sectional dependence indicate that there is a long run relationship between energy consumption and sustainable economic welfare. Granger s causality test results indicated a unidirectional causality running from sustainable economic welfare to energy consumption. This result has implications for energy and environmental policy makers; energy conservation policy will be useful in improving the quality of environment and it does not have adverse impact on their sustainable economic welfare.

Suggested Citation

  • Somayeh Azami & Shabnam Almasi, 2020. "Energy Consumption and Sustainable Economic Welfare: New Evidence of Organization of Petroleum Exporting Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 10(5), pages 31-40.
    • Handle: RePEc:eco:journ2:2020-05-5
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    References listed on IDEAS

    as
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    4. Antonakakis, Nikolaos & Chatziantoniou, Ioannis & Filis, George, 2017. "Energy consumption, CO2 emissions, and economic growth: An ethical dilemma," Renewable and Sustainable Energy Reviews, Elsevier, vol. 68(P1), pages 808-824.
    5. Alshehry, Atef Saad & Belloumi, Mounir, 2015. "Energy consumption, carbon dioxide emissions and economic growth: The case of Saudi Arabia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 41(C), pages 237-247.
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    Cited by:

    1. Paweł Ziemba & Aneta Becker & Jarosław Becker, 2022. "Models and Indices of Sustainability Assessment in the Energy Context," Energies, MDPI, vol. 15(24), pages 1-22, December.
    2. Fahimeh Asgari & Seyedeh Gol Ara Ghoreishi & Matin Khajavi & Ali Foozoni & Ali Ala & Ahmad Gholizadeh Lonbar, 2024. "Data Analysis of Decision Support for Sustainable Welfare in The Presence of GDP Threshold Effects: A Case Study of Interactive Data Exploration," Papers 2407.09711, arXiv.org, revised Aug 2024.

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    More about this item

    Keywords

    Energy Consumption; Sustainable Economic Welfare; Energy Conservation Policy; Quality of environment; OPEC;
    All these keywords.

    JEL classification:

    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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