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Time-varying effects of monetary policy on Iranian renewable energy generation

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  • Razmi, Seyedeh Fatemeh
  • Moghadam, Marjan Heirani
  • Behname, Mehdi

Abstract

This study investigates the impact of monetary policy on renewable energy generation in Iran. It examines three types of renewable energy generation: total renewable energy generation; solid biomass and biogas energy generation; and the hydropower, solar, and wind group energy generation. The study uses the Kalman filter and vector autoregression (VAR) models to examine annual data from 1984 to 2016. The Kalman filter model showed that the money supply parameter moved with a steady trend, except for a sharp point during the Iran-Iraq War. A sharp point can be found for real interest rate parameter as well, although the time of global crisis and sanctions also affects this coefficient. The VAR model results indicate that only a shock to money supply can affect all the three renewable energy generation types.

Suggested Citation

  • Razmi, Seyedeh Fatemeh & Moghadam, Marjan Heirani & Behname, Mehdi, 2021. "Time-varying effects of monetary policy on Iranian renewable energy generation," Renewable Energy, Elsevier, vol. 177(C), pages 1161-1169.
    • Handle: RePEc:eee:renene:v:177:y:2021:i:c:p:1161-1169
    DOI: 10.1016/j.renene.2021.06.020
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