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