The Impact of financial development and research and Development Expenses on Renewable Energy Consumption in Iran

In light of growing concerns about climate change and the depletion of fossil fuels, there has been an increasing focus on renewable energy as a sustainable solution. This study aims to examine the impact of financial development, research and development expenses, and other factors on renewable energy consumption in Iran during the period of ۱۹۷۳-۲۰۲۰ using the distributed autoregressive (ARDL) model. The results of the analysis show that financial development, the stock market, and research and development expenses have had positive and significant effects on renewable energy consumption. In addition, according to the results, trade openness and foreign direct investment also led to an increase in renewable energy consumption in Iran. On the other hand, carbon dioxide emissions have a negative and significant impact on renewable energy consumption. These findings suggest that governments should consider these factors as top priorities in their policies, particularly in their financial programs and support, to help develop this industry and improve environmental quality.

Keywords:

Financial development , Research and development expenses , Renewable energy