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

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  • 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.

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  • 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
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    2. 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).
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    4. 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.
    5. 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.
    6. 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.
    7. 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).
    8. 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).
    9. 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).
    10. 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.
    11. 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.
    12. 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).
    13. 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.
    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.

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