Oil and Gas Economics and Management
Parastoo Boroomandfar; Alireza Daghighi Asli; Azadeh Mehrabian; Marjan Damankeshideh
Abstract
This paper analyzes the existence of an asymmetric causality relationship between the consumption of hydrocarbon products in four sectors: residential-commercial, manufacturing, agricultural, and transportation, and the economic growth of Iran during the years 1981-2017. To achieve this goal, the effect ...
Read More
This paper analyzes the existence of an asymmetric causality relationship between the consumption of hydrocarbon products in four sectors: residential-commercial, manufacturing, agricultural, and transportation, and the economic growth of Iran during the years 1981-2017. To achieve this goal, the effect of positive and negative shocks of the mentioned variables is investigated using the asymmetric causality approach of Hatemi-J (2012). Research results suggest a two-way causal relationship between the positive shocks of economic growth and the consumption of carriers of hydrocarbons in all four residential-commercial, manufacturing, agricultural and transportation sectors. There is a two-way causal relationship between negative economic growth shocks and hydrocarbon carriers’ consumption in agriculture and transportation, and a one-way causal relationship between hydrocarbon energy carriers’ consumption and economic growth in the residential-commercial and industrial sectors. There is no causal relationship between non-directional shocks of hydrocarbon consumption and economic growth.
Oil and Gas Economics and Management
Hamidreza Arbab; Ali Emami Meibodi; Mahdieh Haghpanahan
Abstract
The present study tries to find out the effect of energy consumption on economic growth and emission through applying non-linear framework, the smooth transition regression model, and threshold regression TAR by using the data from1969 to 2017. The results of empirical frameworks indicate that the economic ...
Read More
The present study tries to find out the effect of energy consumption on economic growth and emission through applying non-linear framework, the smooth transition regression model, and threshold regression TAR by using the data from1969 to 2017. The results of empirical frameworks indicate that the economic growth is gradually affected by energy consumption and STR model demonstrates the dynamics. However, the changes in energy consumption on emission has taken place faster and the parametric changes have been more severe. In both states, there is one model which consists of two regimes. In this model, the fossil fuel energy consumption growth variable is selected as transition or threshold variable which is optimal model. The fossil fuel energy consumption variable is considered as a policy variable which in both frameworks have been selected in 12 percent level. The results of TAR model revealed that in high regime of fossil fuel consumption, the first lag of fossil fuel consumption and the logarithm of population have impact on emission and in high regime of low fossil fuel consumption, the fist lag on variable growth of fossil fuel consumption and electricity have impact on emission. Also, the results of TAR model indicated that the electricity energy consumption growth in low regime, the growth in electricity consumption and first lag investment affect the economic growth. The fossil fuel consumption in high regime, the growth variables of fossil fuel consumption and investment have impact on the economic growth.
