RELATIONSHIP BETWEEN CO² EMISSIONS, ENERGY CONSUMPTION, AND ECONOMIC GROWTH IN IRAN

Energy consumption, economic growth, and pollution levels are three of the most critical factors for the successful planning and implementation of economic development goals and policies that promote growth while protecting the environment. Evaluating the relationship between these three factors is of great value to policy and decision makers along with researchers. This study examines the nexus between carbon dioxide (CO2) emissions, energy consumption, and economic growth utilizing the generalized method of moments (GMM) with panel data for the country of Iran for the period 1997-2019. The results show that a positive and significant bidirectional causal relationship exists between energy consumption and economic growth and energy consumption and CO2 emissions. The findings suggest that environmental and energy policies should encourage the use of alternative and cleaner energy sources such as solar energy, establish policies that promote the use of new technologies and other solutions that reduce environmental pollution, and maintain sustainable economic growth strategies and energy sources.