Introduction: Air pollution poses a major threat not only to public health but also to the economy and sustainable development. Renewable energy consumption serves as a key solution to reduce reliance on fossil fuels and improve air quality. The role of energy governance—including policies, regulations, and management structures—is crucial in shaping these relationships. Different countries exhibit varied experiences: Iran, as a developing nation rich in oil resources, often faces challenges from fossil fuel dependency, while Switzerland, as an advanced economy, emphasizes innovation and sustainability. These differences influence the link between air pollution and renewable energy consumption. The main objective of this article is to examine the relationship between air pollution and renewable energy consumption in Iran and Switzerland, with a special focus on the role of energy governance. In Iran, rapid urbanization is a key driver of increased energy use and pollution; in Switzerland, economic complexity and energy security stemming from economic openness stand out. In this study, the relationship between air pollution and renewable energy consumption in Iran and Switzerland was examined, with an emphasis on the role of energy governance. The study period was considered to be 1990 to 2024.
Materials and Methods: Annual data were collected from reliable international sources. The main variables included air pollution index, renewable energy share, economic complexity index, degree of economic openness, urbanization growth, and foreign direct investment. After performing Dickey-Fuller and Johansen cointegration tests, the vector error correction model (VECM) was estimated for each country separately. In Vector Error Correction Model (VECM), which examines both long-run and short-run dynamics while controlling for energy governance. Models were estimated separately for each country to reveal structural differences: Switzerland emphasized economic complexity and openness, while Iran focused on urbanization. This approach facilitated more accurate identification of causal relationships.
Results: The findings showed that in Switzerland, increasing renewable energy consumption was associated with a significant reduction in air pollution. The economic complexity index had a positive and significant effect on this relationship, and each unit increase in it reduced pollution by about 15 percent. In contrast, in Iran, the negative relationship between renewable energy and pollution was weaker, and urbanization growth, as the main factor, increased pollution by 20 percent.Energy governance in Switzerland operates more effectively, reinforcing positive long-term effects, whereas in Iran, structural challenges such as oil dependency limit these benefits. In the short run, energy shocks are corrected more quickly in Switzerland, but the process is slower in Iran.
Discussion: In Switzerland, given the economic complexity and openness of the economy, conditions were created in which renewable energy could effectively contribute to reducing pollution; this was attributed to sustainable policies and innovative approaches. In Iran, urbanization growth was identified as one of the main challenges, as increasing energy demand in urban areas had exacerbated pollution and, in the absence of strong governance, this trend could have led to a further increase in pollution.These differences highlight that Iranian policymakers should prioritize expanding renewable infrastructure and managing urbanization. The study provides valuable insights for developing targeted strategies to promote renewable energy and mitigate air pollution in diverse economic contexts.