The Impact of Renewable Energy Consumption on Sustainable Economic Welfare Index in Selected Countries (1990-2020)

Document Type : Original Article

Authors

1 Ph.D. student, Department of Economics, Central Tehran Branch, Islamic Azad University, Tehran, Iran

2 Assistant Professor, Department of Economics, Central Tehran Branch, Islamic Azad University, Tehran, Iran

3 Assistant Professor, Department of Environment and Natural Resources, Parand Branch, Islamic Azad University, Parand, Iran

Abstract

This study examines the effect of renewable energy consumption on the ISEW in selected countries, Using the fixed effects model and multivariate panel model from 1990 to 2020 by providing BISEW that includes economic variables and an environmental component; Pays and then ranks. The relationship between energy and growth and welfare for selected countries is that after static analysis of variables; Cao method and Dickey-Fuller statistics were used for co-integration and Granger causality to determine the direction of the relationship. In addition to per capita energy consumption and renewable energy production, the variables; Gross fixed capital formation (percentage of GDP); work force; Per capita emission index of pollutants (carbon dioxide emissions) as an index of environmental constraints; Capital leases; Degree of commercial openness; Is used. Next, examine the relationship between energy and growth by replacing GDP with the BISEW and analyzing the results; We rank the selected countries. The results showed that renewable energy in developed countries has a positive impact and share in total energy and ISEW; On the other hand, in developed countries; Renewable energy is unilaterally effective in improving the quality of the environment. In developing countries per capita increase in energy consumption except renewable (fossil); It has an impact on sustainable economic growth and there is a two-way relationship between energy consumption and pollution emissions. In the ranking discussion it was identified; South Korea (developed) and UAE are the most stable economies and the Italy and Angola are the least economically stable.

Keywords

References

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History

  • Receive Date: 08 February 2022
  • Revise Date: 15 May 2022
  • Accept Date: 19 August 2022

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