In collaboration with Payame Noor University and Iranian Association for Energy Economics (IRAEE)

Document Type : Quarterly Journal


1 Faculty of Economics and Management, University of Tabriz

2 M.Sc. in Economics, Faculty of Economics and Management, University of Tabriz, Tabriz, Iran


Energy, as one of the most important factors of production, plays a crucial role in the economic growth of countries, but in today's world, addressing economic growth issues without considering the aspects of sustainable development and intergenerational consequences is impossible. Considering the importance and differences of renewable and non-renewable energies in the sustainable development of countries, the main purpose of this study is to examine the causal relationship between economic growth and the consumption of renewable and non-renewable energies in the D8 and G7 countries. Using two causality approaches, Dumitrescu-Hurlin (2012) and Konya (2006), this study investigates the relationship between these variables over the period from 2000 to 2022. The findings of this study reveal a unidirectional causality from GDP to renewable energy consumption in the D8 countries. Additionally, no causal relationship is observed between non-renewable energy consumption and GDP in these countries. In other words, in the D8 countries, economic growth is not influenced by energy consumption; however, as economic growth increases, these countries tend to adopt renewable energy sources. On the other hand, in the G7 countries that are more developed, the results indicate a unidirectional causal relationship from the consumption of renewable energy to GDP. Furthermore, the findings demonstrate a unidirectional causality from domestic gross production to non-renewable energy consumption. Hence, in the G7 countries, economic growth is influenced by the consumption of renewable energy and, in turn, impacts the consumption of non-renewable energy.


Main Subjects