The Relationship between Renewable Energy Consumption and Economic Growth: Insights from Iceland and Azerbaijan

Iceland leads globally in per capita green energy production, while oil-dependent Azerbaijan endeavors to transition its energy policy towards sustainable alternatives. Investigating the impacts of renewable energy consumption on the economy represents a significant contemporary scientific inquiry....

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Bibliographic Details
Published in:International Journal of Energy Economics and Policy
Main Authors: Shafa Aliyev, Ramil I. Hasanov, Khanim Aghayeva, Javadkhan Y. Gasimov, Sadagat E. Ahmadova
Format: Article in Journal/Newspaper
Language:English
Published: EconJournals 2024
Subjects:
Renewable Energy Consumption
Economic Growth
Toda-Yamamoto Causality Test
Iceland
Green Economics
Sustainability
Environmental sciences
GE1-350
Energy industries. Energy policy. Fuel trade
HD9502-9502.5
Online Access:https://doi.org/10.32479/ijeep.16490
https://doaj.org/article/b0a74febd9624e3db7ae287f79f39db7
Description
Summary:Iceland leads globally in per capita green energy production, while oil-dependent Azerbaijan endeavors to transition its energy policy towards sustainable alternatives. Investigating the impacts of renewable energy consumption on the economy represents a significant contemporary scientific inquiry. The objective of this research is to empirically examine the causal relationship between GDP per capita, a key metric of economic growth, and renewable energy consumption, a fundamental aspect of the green economy. In this research, the Toda-Yamamoto causality test framework of the vector autoregressive (VAR) model was utilized to examine the causal relationship between the variables. The outcomes of this investigation reveal a significant causality between renewable energy consumption and economic growth in Iceland and Azerbaijan.

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