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

This research examines the impact of renewable energy consumption on the sustainable economic welfare index in selected countries using a multivariate panel model (1990-2020) and then ranks it. In addition to per capita, energy consumption and renewable energy production, among the variables; The amount of gross fixed capital formation per capita; workforce; per capita index of carbon dioxide emissions; capital rent; degree of trade openness; is used In the following, we examine the relationship between energy and growth by replacing GDP with the primary index for sustainable economic well-being and analyze the results. The results showed that renewable energy in developed countries has a positive effect and contribution to the total power and sustainable economic welfare index; On the other hand, in developed countries, Renewable energy is unilaterally effective in the level of environmental quality. In developing countries, the per capita increase in non-renewable energy consumption is effective in sustainable economic growth. There is a two-way relationship between energy consumption and pollution emissions. It was determined in the ranking discussion; That South Korea (developed) and UAE (developing) are the most stable economies, and Italy (extended) and Angola (developing) are the least stable economies.


Introduction
Criticism of the use of GDP as a measure of economic progress [1], in combination with the controversy and ambiguity describing up-to-date results in the energygrowth link [2], is the reason why we link a new paradigm to Suggest energy-growth. In this paper, we modify GDP as a measure of economic growth with a sustainable economic welfare index and try to understand the tools for measuring survivalcommonly used to curb energy consumption how they affect sustainable financial well-being. Given that sustainable growth is the only available answer to the simultaneous resolution of environmental, social, and economic crises in many countries, adding a sustainable economic welfare index to the energygrowth link can be instructive. Attention to developing and industrialized countries; This justifies the fact that large economies, as well as energy exporters, are large consumers of fossil fuels and emitters of greenhouse gas emissions.
Our new article help includes the following two points: 1. The present paper calculates the first indicator of sustainable economic prosperity for the 20 developed countries [4]. This lone is vital research topic.2.This article separates studies into "collective and segregated energy studies" and also performs other groupings that allow better classification of articles, and thus an innovative way of reviewing reports on energy linkage. Growth suggests for developed countries.

Material and Method
To measure the sustainable economic welfare index, our formal proposal is used in Mengaki and Tiwari's (2017) [3] research, as shown in Relationships one and two below.
Where PC value equals personal consumption, G stands for Gini coefficient, and P stands for Poverty Index. To calculate the extent of environmental degradation, the total damage of mineral depletion factors, energy reduction, carbon dioxide emissions, and forest degradation is used. The amount of mineral discharge is equal to the ratio of its inventory to the life of the remaining reserves (maximum 25 years), which includes tin, gold, lead, zinc, iron, copper, nickel, silver, bauxite, and phosphate. Residual energy (maximum 25 years), including coal, crude oil, and natural gas. Deforestation equals the ratio of deforestation and production of articial products to the rate of forest growth. Carbon dioxide emissions are estimated at $ 20 per ton of carbon produced (in 1995 per unit damage). How to calculate the sustainable economic welfare index that we will calculate homogeneously across all developed countries in our discussion. ISEW per capita and GDP per capita; Variable vectors are dependent. E indicates per capita energy consumption. RES suggests the production of renewable energy, which is a percentage of power energy. K Fixed per capita fixed capital formation (capital growth needed to offset depreciation and population growth, regardless of changes in labor productivity). L Labor force (power and productivity of labor force that grows at the same rate as capital and population). CO2 indicates per capita emission of pollutants based on metric tonnage of carbon dioxide emissions will be used as an indicator of environmental constraints. R Capital leases.

2.1.Specify the model
Since Y, K; E, RES, L; CO2, T, and R are also accumulated; The two-step method of Engel and Granger (1987) is used, and the residuals and the remaining parts, which are composed of relational regression models 3 and 4, are error correction expressions, finally utilizing the vector autoregression model and determining the interruption; the dynamic error correction model is estimated as an example of the following Equation.
Note: Formulas are rewritten with eight variables based on formula (7) so that one of the variables (dependent and independent) is substituted for the dependent variable Y in each turn. It should be noted that the dependent variable with the Yit-k interval is the same dependent variable as ISEW and GDPiseg.

Results and Discussion
The present empirical analysis is based on a functional relationship that forms an appropriate configuration concerning energy use and renewable energy. The primary research of this paper, after calculating ISEW from formulas 1 and 2, focuses on the two relations, 3 and 4, which aim to find energy assistance and other variables in the context of economic production. Sustainable economy (for developed countries); Has been evaluated. Interested readers can find them in the Structured sample of the article. Our paper follows all the usual steps in analyzing panel data, which means that we first start after a static test; A co-integration analysis of the Cao method and Dickey Foller's statistics were used to estimate the panel model, and then the causal analysis of the vector autoregression model was determined by determining the interval and the vector error correction model and finally the countries were ranked. The results were presented in tables.

Fixed effects model
Based on the results obtained from a dynamic fixed panel model, the following results ( Equations 5,6 ), are applied from the estimation of Equations (3)(4).
Because all variables are expressed in logarithms, the coefficients represent elasticity. In the above equation, we see a positive relationship between energy and renewable energy and sustainable economic prosperity. Capital, emissions of pollution, labor, and rent of money and power had the same sign in both equations. Renewable energy and the degree of commercial openness in these two equations have opposite signs. This probably means that these variables have different effects on GDP per capita and per capita sustainable economic welfare index. Thus, a 1% increase in energy causes a 0.74% increase in the sustainable economic welfare index, and a 1% increase in renewable energy production causes a 0.37% increase in the sustainable economic welfare index. Therefore, renewable energy as a part of total energy contributes to a sustainable economic welfare index to a large extent; this indicates the dependence of welfare and sustainable development on renewable energy consumption. Also, a 1% increase in energy causes a 0.983% increase in GDP, and a 1% increase in renewable energy production causes a 0.057% decrease in GDP. Therefore, in these countries, it is the consumption of fossil energy that drives economic growth, which of course, is accompanied by a reduction in the quality of the environment. Table 2 shows the ranking of developing countries based on GDP and the ratio of the difference between a stable GDP per capita index of GDP per capita to GDP per capita, i.e. the ratio MSGE = (GDP-GDPseg / GDP). The smaller the ratio, the more stable a country's economic growth is. The ranking of developing countries from highest economic growth to lowest as well as most stable economic growth is attached to the most unstable economic growth according to Table 2.
The second part of Table 2 also shows the ranking of developed countries based on the sustainable economic welfare index and the ratio of the percentage difference of the sustainable economic welfare index per capita to GDP per capita, i.e. the ratio of MSE = (GDP-ISEW) / GDP. The smaller the ratio, the more stable a country's economy is. The ranking of developed countries from highest welfare and lowest as well as most stable economies to the most unstable economies according to Table 2.

Conclusions
In general, the principles of analysis are: Renewable energy in developed countries has a positive impact and shares in total energy and sustainable economic welfare index; On the other hand, in developed countries, Renewable energy has a one-way effect on the quality of the environment. In developing countries, per capita increase in energy consumption except for renewable (fossil); has an impact on sustainable economic growth, and there is a two-way relationship between energy consumption and pollution emissions.
A. In developing countries and in the long run, with the current conditions of renewable energy production, we do not have a positive and significant impact on this energy in achieving a sustainable economic growth index. B-Any investment in reducing pollution, improving technology, and increasing the possibility of producing renewable energy and replacing it with fossil energy, in addition to "considering the social and environmental dimensions in addition to the economic dimension, the position of countries following this logic is moving towards Industrialization and technology improvement will increase global standards and growth of the index of human development and sustainable economic C. Our findings based on data on sustainable economic growth show that the UAE has the best sustainable economy, and Angola has the lowest economic stability.
In developed countries: A. Consumption of renewable energy has a positive and significant effect on the welfare index of a sustainable economy. B-By achieving sustainable economic welfare, any action and investment in improving the quality of the environment will lead to a sharp reduction in pollution and increase sustainable welfare, which results in a more sustainable economy. On the other hand, in a country with clean air, people who The prosperous will be happy that the future will also benefit from the higher quality of life of the society according to the global standards. The ideal horizon of the world community is when RES = E. C. Our findings, based on the availability of sustainable economic welfare data and calculated based on ISEW, show that; South Korea has the best stable economy and Italy has the lowest economic stability.

Research limitations
Every research has its limitations in the beginning, i.e. subject selection up to the stages of implementation, analysis, and conclusion. Explaining the rules of study helps researchers who intend to research in different fields to do research in similar areas with an open mind and awareness of the obstacles, shortcomings, and limitations of research. This research also has barriers and constraints, the most important of which is the lack of complete information about the study variables for all countries. Because one of the criteria for selecting variables and nations is the existence of comprehensive information about them, in this study, based on the availability of data as well as between different countries, due to the completeness of the news, The surveyed countries were selected.

Suggestions
Since the use of technology requires knowing the strengths and weaknesses of its use, at the beginning of the article, we will describe the advantages and disadvantages of using renewable energy. Advantages: 1-No worries about running out of these energies in the coming years.2-No pollution and increase in the quality of the environment.3-Lack of many parts, therefore less maintenance and reduction of operating costs.4-Creating high productivity employment. 5-Increasing community health 6-Flexibility of rapid use in emergencies. 7-Easy and affordable access to energy in specific geographical areas (villages and islands) 8-Reducing the cost of electricity 9-Independence and security of energy supply.Disadvantages:1-High initial cost (in many countries, the cost of renewable electricity is still higher than the price of mains electricity).2-Non-continuity and alternation of these energies at all times (solar power does not shine at night or lacks steady wind).3-Decreased reliability and trust due to geographical constraints in different countries for the supply of renewable energy by the private sector. Existence of tall buildings that make it difficult for other facilities to absorb the sun, or lack of clear skies, or insufficient rainfall to store water from dams.4-The need to reduce consumption due to the low efficiency of renewable energy conversion compared to fossil fuels.5-Some renewable technologies, such as wind energy, create noise pollution for the inhabitants of the surrounding areas.

Practical and Future suggestions
1-Considering the benefit of Iran from a suitable climate in different parts and the existence of the necessary potential for the production of renewable energy (wind; solar) can be done by measures such as recognizing the country's capabilities, using the country's executive power in various economic sectors. Social, identifying investment opportunities and introducing these projects to the investment organization and providing the necessary conditions to increase the scope of foreign investment in various economic sectors and, more importantly, the provision of clean, sustainable energy (through privatization, Transparency of prices, freedom of action of banks in paying facilities, financial incentives and, in general, paving the way for increasing the role of the market in various economic sectors) can pave the way for further realization of the components of Iran's sustainable economic welfare indicators. 2-Ensuring energy security of countries by reducing dependence on oil exports and imports and consumption of fossil fuels and increasing the quality of polluting fuels and poor quality gasoline to minimize deaths and incurable diseases caused by air pollution.3-An energy-exporting country with a high GDP may emit more pollutants in its production cycle by using old power systems and fossil fuels. People in the community may have a lower quality of life. Although non-renewable energy consumption helps improve economic growth, As this type of energy increases, pollutants such as greenhouse gases enter the environment, which has harmful effects such as acid rain and global warming; As in metropolitan areas of Iran, deaths due to pollution have increased sharply. On the other hand, the feasibility of producing various types of renewable energy in different regions of the country, construction of large solar power plants in the desert plain and Lut plain and desert areas of the country to replace electricity generation instead of steam and gas power plants; It is possible to have a cleaner country, happier people and be more successful in the field of environment. 4-Due to the high consumption of fossil fuels such as coal, oil, gas, and the like over the past two centuries and the limited resources of this type of fuel, the end of fossil fuel resources and their limitations in energy supply and their environmental damage must be. Therefore, officials and policymakers, especially in developed countries (which have sufficient resources to prepare the infrastructure for the use of clean energy), should carefully plan for the benefit of non-renewable energy to make optimal use of this energy and preserve it for future generations. , To provide the ground for further improvement and acceleration of economic growth and sustainable welfare of the country. 5-Public and private sector investment in projects related to producing electricity from renewable energy sources instead of hydropower plants due to the current and future drought in most countries. 6-Due to the higher cost of electricity generation from renewable energy sources compared to fossil fuels, it is recommended to buy a guaranteed purchase of clean energy power plants from the investor at a reasonable cost and connect them to the stable load of the national grid with the possibility of creating immediate alternative consumption routes; Will attract a large number of private sector investors; Renewable energy projects will be economically justified.7-Utilizing the experiences of other countries in the field of renewable energy production and increasing investment in research and new technologies by localizing the technology of clean energy production equipment and, more importantly, their maintenance and timely service.8-Providing a cultural context for the general public to become more familiar with the benefits of using renewable energy and saving fossil energy consumption. 9-Develop and implement appropriate economic policies to increase energy efficiency and optimize energy consumption through increasing renewable energy and investment in this area.

Future suggestions:
1-Increase the period and update the review period in case of publication and presentation of new World Bank information, as well as with the availability of information from more countries and grouping of countries according to economic indicators.2-In case of access to more data, Define the most influential parameters in the sustainable economic welfare index of human society. 3-Use optimization methods for the consumption of fossil fuels and scenarios of renewable energy consumption in different economic conditions. 4-Using artificial grid methods to predict the consumption of various energies in Iran. 5-Estimating the amount of renewable energy production required and reducing pollution by determining the sustainable economic welfare index. [1] F. Karanfil 52 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: Capital leases, Gross Domestic Product (GDP), Sustainable Economic Welfare Index, Energy Saving, Degree of commercial openness.