This research investigates the existence and direction of Granger causality between economic growth, energy consumption, and carbon emissions in Iran. A multivariate model including economic growth, energy consumption, carbon emissions, capital stock, labor force, and urban population is used to determine ...
Read More
This research investigates the existence and direction of Granger causality between economic growth, energy consumption, and carbon emissions in Iran. A multivariate model including economic growth, energy consumption, carbon emissions, capital stock, labor force, and urban population is used to determine eventual causality between variables according to Toda-Yamamoto Approach. Results indicate that there is a bi-directional causality relationship between gross domestic product and CO2 emissions. Also, there is a uni-direction causality relationship from energy consumption to CO2 emissions. Finally, the results maintain that the EKC hypothesis for GDP and CO2 emissions is relevant in the period of study.
