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Investigating a Non-Cyclical Diagram Between Energy Consumption, Carbon Dioxide Emissions and Economic Growth: a Case Study IRAN

Document Type : Original Article

Author

Department of Economics, Faculty of Economics, Managment and Accounting, Yazd University, Yazd, Iran

Abstract

Introduction: Fossil fuel consumption has warmed the earth by releasing greenhouse gases. Abnormal climate changes, rising sea levels, melting glaciers and other climate phenomena have attracted global attention. Greenhouse gas emissions are considered as the main cause of climate change and global warming. The largest percentage of greenhouse gases is carbon dioxide gas. The spread of pollution is one of the most important problems of countries It is one of the problems of the present century. Iran is among the ten countries with the highest carbon dioxide emissions in the world, and measures have been taken to reduce carbon dioxide emissions in this country, which have not led to a reduction in carbon dioxide emissions in this country.
Materials and Methods: The purpose of this research is to investigate energy consumption, carbon dioxide emissions and economic growth using the directional non-cyclical graph approach for the period of 1990-2018 for the country of Iran. The data was obtained annually from the World Bank. Pearson's correlation test and Granger's causality test were investigated for variables of economic growth, capital, open trade, carbon dioxide emissions and energy consumption. For the first time, this research examines the causal relationship between energy consumption, carbon dioxide emissions and economic growth with the approach of a directed non-cyclic diagram.
Results: According to the results of this research, there is a significant correlation in the variables of carbon dioxide emission, open trade, energy consumption, capital formation and GDP. The highest correlation coefficient belongs to GDP and carbon dioxide emissions and the lowest correlation coefficient is related to gross domestic production and open trade. According to the results of the Granger causality test, causality from GDP to carbon dioxide emissions, causality from carbon dioxide emissions to energy consumption, causality from GDP to energy consumption, Causality from capital to energy consumption, causality from capital to GDP, The cause of carbon dioxide emissions to open trade. Causality from energy consumption to open trade, causality from capital to open trade and so on There is causality from GDP to open trade. Iran has a relative advantage in energy consumption due to its huge resources of oil and gas, which has caused the emission of pollutants by the gross domestic product.
Discussion: According to the results in Iran, there is causality from gross domestic product to energy consumption and carbon dioxide emissions, which shows that Iran does not need to reduce its economic growth in order to reduce carbon dioxide emissions. It indicates that energy consumption and carbon dioxide emissions in Iran will not lead to economic growth. Iran can follow a conservative energy policy and a policy to reduce carbon emissions in the long term without creating obstacles and reducing economic growth. Economic growth has led to the emission of pollution and it is possible to pursue economic growth without the emission of pollution by using sustainable development policies. The causality is from economic growth to energy consumption, trade and capital. According to the directed acyclic diagram (DAG), the Granger causality test was investigated in the variables of economic growth, open trade, capital, carbon dioxide emissions and energy consumption. According to the results of this research, Granger causality has started from economic growth to other variables.

Keywords

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Environment and Interdisciplinary Development
Volume 8, Issue 81
November 2023
Pages 19-29
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