IDEAS home Printed from https://ideas.repec.org/a/plo/pone00/0253464.html
   My bibliography  Save this article

Dynamic linkages between renewable energy, carbon emissions and economic growth through nonlinear ARDL approach: Evidence from Iran

Author

Listed:
  • M S Karimi
  • S Ahmad
  • H Karamelikli
  • D T Dinç
  • Y A Khan
  • M T Sabzehei
  • S Z Abbas

Abstract

This study examines the relationship between economic growth, renewable energy consumption, and carbon emissions in Iran between 1975–2017, and the bounds testing approach to cointegration and the asymmetric method was used in this study. The results reveal that in the long run increase in renewable energy consumption and CO2 emissions causes an increase in real GDP per capita. Meanwhile, the decrease in renewable energy has the same effect, but GDP per capita reacts more strongly to the rise in renewable energy than the decline. Besides, in the long run, a reduction of CO2 emissions has an insignificant impact on GDP per capita. Furthermore, the results from asymmetric tests suggest that reducing CO2 emissions and renewable energy consumption do not have an essential role in decreasing growth in the short run. In contrast, an increase in renewable energy consumption and CO2 emissions do contribute to boosting the growth. These results may be attributable to the less renewable energy in the energy portfolio of Iran. Additionally, the coefficients on capital and labor are statistically significant, and we discuss the economic implications of the results and propose specific policy recommendations.

Suggested Citation

  • M S Karimi & S Ahmad & H Karamelikli & D T Dinç & Y A Khan & M T Sabzehei & S Z Abbas, 2021. "Dynamic linkages between renewable energy, carbon emissions and economic growth through nonlinear ARDL approach: Evidence from Iran," PLOS ONE, Public Library of Science, vol. 16(7), pages 1-15, July.
    • Handle: RePEc:plo:pone00:0253464
    DOI: 10.1371/journal.pone.0253464
    as

    Download full text from publisher

    File URL: https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0253464
    Download Restriction: no
    File URL: https://journals.plos.org/plosone/article/file?id=10.1371/journal.pone.0253464&type=printable
    Download Restriction: no
    File URL: https://libkey.io/10.1371/journal.pone.0253464?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Pao, Hsiao-Tien & Fu, Hsin-Chia, 2013. "Renewable energy, non-renewable energy and economic growth in Brazil," Renewable and Sustainable Energy Reviews, Elsevier, vol. 25(C), pages 381-392.
    2. Luo, Jingyang & Feng, Leiyu & Zhang, Wei & Li, Xiang & Chen, Hong & Wang, Dongbo & Chen, Yinguang, 2014. "Improved production of short-chain fatty acids from waste activated sludge driven by carbohydrate addition in continuous-flow reactors: Influence of SRT and temperature," Applied Energy, Elsevier, vol. 113(C), pages 51-58.
    3. Magnani, Natalia & Vaona, Andrea, 2013. "Regional spillover effects of renewable energy generation in Italy," Energy Policy, Elsevier, vol. 56(C), pages 663-671.
    4. Al-mulali, Usama & Fereidouni, Hassan Gholipour & Lee, Janice Ym & Sab, Che Normee Binti Che, 2013. "Examining the bi-directional long run relationship between renewable energy consumption and GDP growth," Renewable and Sustainable Energy Reviews, Elsevier, vol. 22(C), pages 209-222.
    5. Gorkemli Kazar & Arthur Kazar, 2014. "The Renewable Energy Production-Economic Development Nexus," International Journal of Energy Economics and Policy, Econjournals, vol. 4(2), pages 312-319.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mohammad Sulieman Mohammad Jaradat, 2022. "The Role of Renewable Energy Investment on Achieving Economic Growth at the Gulf Cooperation Council Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 12(1), pages 349-354.
    2. Megersa Tesfaye Boke & Semu Ayalew Moges & Zeleke Agide Dejen, 2022. "Optimizing renewable-based energy supply options for power generation in Ethiopia," PLOS ONE, Public Library of Science, vol. 17(1), pages 1-15, January.
    3. Qiang Wang & Jiale Guo & Rongrong Li & Xue-ting Jiang, 2024. "Economic growth and carbon emission in the Organization for Economic Cooperation and Development countries: The effects of oil, gas, and renewable energy," Energy & Environment, , vol. 35(4), pages 2107-2130, June.
    4. Ali, Mumtaz & Tursoy, Turgut & Samour, Ahmed & Moyo, Delani & Konneh, Abrahim, 2022. "Testing the impact of the gold price, oil price, and renewable energy on carbon emissions in South Africa: Novel evidence from bootstrap ARDL and NARDL approaches," Resources Policy, Elsevier, vol. 79(C).
    5. Wu, Di & Yang, Yuping & Shi, Yi & Xu, Meng & Zou, Wenjie, 2022. "Renewable energy resources, natural resources volatility and economic performance: Evidence from BRICS," Resources Policy, Elsevier, vol. 76(C).
    6. Wang, Qiang & Wang, Lili & Li, Rongrong, 2023. "Could trade protectionism reshape the nexus of energy-economy-environment? Insight from different income groups," Resources Policy, Elsevier, vol. 85(PA).
    7. Arash Refah-Kahriz & Hassan Heidari & Mahdiyeh Rahimdel, 2023. "Is there a similar Granger causality among CO2 emissions, energy consumption and economic growth in different regimes in Iran?," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(4), pages 3801-3822, April.
    8. Peng, Li & Li, Yongchang & Raza, Syed Ali & Shahzadi, Irum, 2023. "Natural resources and environmental sustainability: COP26 targets from resources-based perspective," Resources Policy, Elsevier, vol. 83(C).
    9. Yazan Qashou & Ahmed Samour & Mohammed Abumunshar, 2022. "Does the Real Estate Market and Renewable Energy Induce Carbon Dioxide Emissions? Novel Evidence from Turkey," Energies, MDPI, vol. 15(3), pages 1-13, January.
    10. Bashir, Muhammad Farhan & Shahbaz, Muhammad & Malik, Muhammad Nasir & Ma, Beiling & Wang, Jianming, 2023. "Energy transition, natural resource consumption and environmental degradation: The role of geopolitical risk in sustainable development," Resources Policy, Elsevier, vol. 85(PA).
    11. Cheng Yang & Jean Pierre Namahoro & Qiaosheng Wu & Hui Su, 2022. "Renewable and Non-Renewable Energy Consumption on Economic Growth: Evidence from Asymmetric Analysis across Countries Connected to Eastern Africa Power Pool," Sustainability, MDPI, vol. 14(24), pages 1-20, December.
    12. Salokhiddin Avazkhodjaev & Jaloliddin Usmonov & M ria Bohdalov & Wee-Yeap Lau, 2022. "The Causal Nexus between Renewable Energy, CO2 Emissions, and Economic Growth: New Evidence from CIS Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 12(6), pages 248-260, November.
    13. Shrestha, Anil & Mustafa, Andy Ali & Htike, Myo Myo & You, Vithyea & Kakinaka, Makoto, 2022. "Evolution of energy mix in emerging countries: Modern renewable energy, traditional renewable energy, and non-renewable energy," Renewable Energy, Elsevier, vol. 199(C), pages 419-432.
    14. Tomás Baioni, 2021. "A Dynamic Fixed Effects and Nonlinear Causality Approach to analyze CO2 Emissions," Asociación Argentina de Economía Política: Working Papers 4432, Asociación Argentina de Economía Política.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lin, Boqiang & Moubarak, Mohamed, 2014. "Renewable energy consumption – Economic growth nexus for China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 40(C), pages 111-117.
    2. Hadi Darvishi & Shayesteh Varedi, 2018. "Assessment of the contemporaneous impacts of GDP and renewable energy consumption, applying the Dynamic Panel Data: Evidence from developed countries," International Journal of Energy Economics and Policy, Econjournals, vol. 8(1), pages 159-166.
    3. Akan, Taner & Gündüz, Halil İbrahim & Emirmahmutoğlu, Furkan & Işık, Ali Haydar, 2023. "Disaggregating renewable energy-growth nexus: W-ARDL and W-Toda-Yamamoto approaches," Renewable and Sustainable Energy Reviews, Elsevier, vol. 188(C).
    4. Marques, António Cardoso & Fuinhas, José Alberto & Menegaki, Angeliki N., 2014. "Interactions between electricity generation sources and economic activity in Greece: A VECM approach," Applied Energy, Elsevier, vol. 132(C), pages 34-46.
    5. Sebri, Maamar, 2015. "Use renewables to be cleaner: Meta-analysis of the renewable energy consumption–economic growth nexus," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 657-665.
    6. Ozcan, Burcu & Ozturk, Ilhan, 2019. "Renewable energy consumption-economic growth nexus in emerging countries: A bootstrap panel causality test," Renewable and Sustainable Energy Reviews, Elsevier, vol. 104(C), pages 30-37.
    7. Koçak, Emrah & Şarkgüneşi, Aykut, 2017. "The renewable energy and economic growth nexus in Black Sea and Balkan countries," Energy Policy, Elsevier, vol. 100(C), pages 51-57.
    8. Marques, António Cardoso & Fuinhas, José Alberto, 2015. "The role of Portuguese electricity generation regimes and industrial production," Renewable and Sustainable Energy Reviews, Elsevier, vol. 43(C), pages 321-330.
    9. Mounir Ben Mbarek & Kais Saidi & Mohammad Mafizur Rahman, 2018. "Renewable and non-renewable energy consumption, environmental degradation and economic growth in Tunisia," Quality & Quantity: International Journal of Methodology, Springer, vol. 52(3), pages 1105-1119, May.
    10. Marques, António Cardoso & Fuinhas, José Alberto & Menegaki, Angeliki N., 2016. "Renewable vs non-renewable electricity and the industrial production nexus: Evidence from an ARDL bounds test approach for Greece," Renewable Energy, Elsevier, vol. 96(PA), pages 645-655.
    11. Seong-Hoon Lee & Yonghun Jung, 2018. "Causal dynamics between renewable energy consumption and economic growth in South Korea: Empirical analysis and policy implications," Energy & Environment, , vol. 29(7), pages 1298-1315, November.
    12. Naveed Razzaq & Faqeer Muhammad & Rehmat Karim & Muhammad Tariq & Khair Muhammad, 2021. "The Nexus between Energy, Environment and Growth: Evidence from Latin-American Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 11(1), pages 82-87.
    13. Shahbaz, Muhammad & Hussain Shahzad, Syed Jawad & Jammazi, Rania, 2016. "Nexus between U.S Energy Sources and Economic Activity: Time-Frequency and Bootstrap Rolling Window Causality Analysis," MPRA Paper 68724, University Library of Munich, Germany, revised 08 Jan 2016.
    14. repec:ipg:wpaper:2014-518 is not listed on IDEAS
    15. Minyoung Yang & Jinsoo Kim, 2020. "Revisiting the Relation between Renewable Electricity and Economic Growth: A Renewable–Growth Hypothesis," Sustainability, MDPI, vol. 12(8), pages 1-22, April.
    16. Stamatios Ntanos & Michalis Skordoulis & Grigorios Kyriakopoulos & Garyfallos Arabatzis & Miltiadis Chalikias & Spyros Galatsidas & Athanasios Batzios & Apostolia Katsarou, 2018. "Renewable Energy and Economic Growth: Evidence from European Countries," Sustainability, MDPI, vol. 10(8), pages 1-13, July.
    17. Ocal, Oguz & Aslan, Alper, 2013. "Renewable energy consumption–economic growth nexus in Turkey," Renewable and Sustainable Energy Reviews, Elsevier, vol. 28(C), pages 494-499.
    18. Bakry, Walid & Mallik, Girijasankar & Nghiem, Xuan-Hoa & Sinha, Avik & Vo, Xuan Vinh, 2023. "Is green finance really “green”? Examining the long-run relationship between green finance, renewable energy and environmental performance in developing countries," Renewable Energy, Elsevier, vol. 208(C), pages 341-355.
    19. Adewuyi, Adeolu O. & Awodumi, Olabanji B., 2017. "Renewable and non-renewable energy-growth-emissions linkages: Review of emerging trends with policy implications," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 275-291.
    20. Demir, Caner & Cergibozan, Raif, 2020. "Does alternative energy usage converge across Oecd countries?," Renewable Energy, Elsevier, vol. 146(C), pages 559-567.
    21. Lu s Miguel Marques & Jos Alberto Fuinhas & Ant nio Cardoso Marques, 2017. "On the Dynamics of Energy-growth Nexus: Evidence from a World Divided into Four Regions," International Journal of Energy Economics and Policy, Econjournals, vol. 7(3), pages 208-215.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:plo:pone00:0253464. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: plosone (email available below). General contact details of provider: https://journals.plos.org/plosone/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.