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

Authors

  • Shafa Aliyev Sumgait State University, Sumgait, Azerbaijan; & Azerbaijan State University of Economics (UNEC), Baku, Azerbaijan; & Western Caspian University, Baku, Azerbaijan
  • Ramil I. Hasanov Western Caspian University, Baku, Azerbaijan; & Azerbaijan Technological University, Ganja, Azerbaijan
  • Khanim Aghayeva Western Caspian University, Baku, Azerbaijan
  • Javadkhan Y. Gasimov Nakhchivan State University, Nakhchivan, Azerbaijan
  • Sadagat E. Ahmadova Nakhchivan State University, Nakhchivan, Azerbaijan

DOI:

https://doi.org/10.32479/ijeep.16490

Keywords:

Renewable Energy Consumption, Economic Growth, Toda-Yamamoto Causality Test, Iceland, Green Economics, Sustainability

Abstract

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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Published

2024-09-07

How to Cite

Aliyev, S., Hasanov, R. I., Aghayeva, K., Gasimov, J. Y., & Ahmadova, S. E. (2024). The Relationship between Renewable Energy Consumption and Economic Growth: Insights from Iceland and Azerbaijan. International Journal of Energy Economics and Policy, 14(5), 229–235. https://doi.org/10.32479/ijeep.16490

Issue

Vol. 14 No. 5 (2024)

Section

Articles

License

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