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

Aliyev S., Hasanov R. I., Aghayeva K., Gasimov J. Y., Ahmadova S. E.

International Journal of Energy Economics and Policy, vol.14, no.5, pp.229-235, 2024 (Scopus) identifier

  • Nəşrin Növü: Article / Article
  • Cild: 14 Say: 5
  • Nəşr tarixi: 2024
  • Doi nömrəsi: 10.32479/ijeep.16490
  • jurnalın adı: International Journal of Energy Economics and Policy
  • Jurnalın baxıldığı indekslər: Scopus, ABI/INFORM, EconLit, Directory of Open Access Journals
  • Səhifə sayı: pp.229-235
  • Açar sözlər: Economic Growth, Green Economics, Iceland, Renewable Energy Consumption, Sustainability, Toda-Yamamoto Causality Test
  • Adres: Yox

Qısa məlumat

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.