Document Type : Research Paper
Author
Assistant Professor of Allameh Tabatabai Faculty of Economics
Abstract
Achieving sustainable economic growth and reducing dependence on fossil resources is one of the strategic goals of Iran's economy in the current situation. Economic complexity is an indicator of the level of technology and knowledge in production, and renewable energy is a tool for reducing environmental impacts and diversifying the energy portfolio, both of which play a vital role in sustainable economic growth. This research analyzes the asymmetric and non-linear effects of these two key variables on Iran's economic growth during the period of 1374 to 1401 using the autoregressive model with asymmetric distribution breaks (NARDL). This model provides the possibility of separately examining the positive and negative effects of variables in the short and long term. The findings show that the positive shocks of renewable energy consumption and economic complexity have positive and significant effects on economic growth, and on the other hand, the negative shocks of these variables have a negative and limited effect. An increase in renewable energy consumption and economic complexity increases economic growth in the long term, and a decrease in renewable energy consumption and economic complexity reduces economic growth. Also, investment and workforce have a positive effect and carbon dioxide emissions have a negative effect on economic growth. The findings emphasize the importance of developing renewable energy and improving economic complexity in Iran. These two strategies, in addition to strengthening economic growth, can reduce environmental damage and reduce the country's dependence on fossil resources
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