Iranian Energy Economics

Abstract The purpose of this paper is to investigate the effect of investment in renewable energy on Iran's macroeconomic variables. In this regard, statistical information related to the period 1991-2022 was used. For this purpose, the stochastic dynamic general equilibrium method was used. The information used in this article was collected from the Central Bank of Iran and the Ministry of Energy. The theoretical framework of the present study will be based on investment models, optimization and inter-sectoral balance. In this study, the effects of investment in the field of renewable energy through public and private companies are included in the model. The results obtained from the investment shock in the field of renewable energy indicated that investment in this sector had the greatest impact on the growth of economic added value in the industry, services, agriculture, and oil and gas sectors. Also, the obtained results indicate that in order to increase social welfare and achieve economic development, a 4-year investment period with a 50% growth in the field of renewable energy infrastructure in the country is necessary.