The impact of renewable energy and energy transitions index on climate change

Document Type : Research Paper

Authors

1 Agricultural Planning, Economics and Rural Development Research Institute(APERDRI).

2 Department of Natural resource and environmental economics, Agricultural Planning, Economics and Rural Development Research Institute(APERDRI), Tehran, Iran.

10.22069/ijerr.2025.22981.1458

Abstract

Considering that fossil fuels are the initial source of carbon emission in today's industrialized world, a successful transition to clean energy is essential in order to mitigate the effects of climate change. In this context, the World Economic Forum created the Energy Transition Index (ETI) intending to perform an all-encompassing analysis of the ongoing energy transition across the globe. In this study, the impact of variables such as economic growth, urbanization growth rate, industry structure, as well as the ETI, and the amount of renewable energy consumption on climate change in Iran has been investigated using the SVAR model for 2000-2020. The necessary data were obtained from the World Bank, the Central Bank of the Islamic Republic of Iran, the Iranian Statistical Center, and the Ministry of Energy. The study's findings revealed that economic growth, urbanization, and industrial structure had a positive ETI, and renewable energy negatively affected climate change in Iran. The results of this study showed that the ETI had a more substantial effect on reducing greenhouse gas(GHG) emissions than renewable energy. Considering the greater importance of the ETI on climate change compared to the amount of use of renewable energy and also the multidimensionality of this index, it can be stated that energy policies do not act individually, but react to macro-economic, institutional, social, and geopolitical considerations.

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Environmental Resources Research
Volume 13, Issue 1
July 2025
Pages 171-186

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