Investigating the Environmental Impacts of Renewable Energy Development and Health Expenditures on the load capacity factor in Iran

Document Type : RESEARCH PAPER

Authors

1 Ph.D Candidate, Department of Economic Development and Planning, Faculty of Management and Economics, Tarbiat Modares University, Tehran, Iran

2 , Associate Professor, Department of Economic Development and Planning, Faculty of Management and Economics, Tarbiat Modares University, Tehran, Iran

3 Associate Professor, Department of Economic Development and Planning, Faculty of Management and Economics, Tarbiat Modares University, Tehran, Iran.

4 Professor, Department of Disaster and Emergency Management, School of Administrative Studies, York University, Toronto, Canada.

Abstract

Human activities, particularly those related to the consumption of fossil fuels, have led to environmental pollution and increased greenhouse gas emissions. Policies such as reducing fossil fuel consumption and promoting renewable energy sources can bring about improvements, including enhanced air quality and overall environmental quality. This study aims to investigate the relationship between the health sector, energy, and economic activities with environmental quality. For this purpose, the "load capacity factor" (the ratio of biocapacity to ecological footprint) is used as the primary index for assessment.
Using the Autoregressive Distributed Lag (ARDL) approach, the study examines the impact of government health expenditures, renewable energy consumption, and gross domestic product (GDP) on the load capacity factor in Iran during the period from 1990 to 2019. The results of the long-run model estimation indicate that both government health expenditures and renewable energy consumption have a positive and statistically significant effect on the load capacity factor. Specifically, a 1% increase in each of these variables leads to an approximate 0.09% rise in the load capacity factor, highlighting the crucial role of investment in the health sector and clean energy in improving environmental quality. Conversely, per capita GDP has a negative and significant effect, with a coefficient of -0.17, indicating that economic growth in Iran, under current conditions, exerts increasing pressure on biological resources and reduces environmental sustainability. Furthermore, the results of the error correction model show that the error correction coefficient is -0.69 and statistically significant, implying that approximately 69% of the short-run deviations from the long-run equilibrium path are corrected in the following period. This reflects a rapid adjustment of the dependent variable towards its long-run equilibrium state.
Based on the research findings, it is recommended that the government pursue green growth through diversifying renewable energy sources, reducing dependence on fossil fuels, and supporting environmentally friendly technologies. Additionally, increasing health expenditures with a focus on prevention and promoting environmental awareness can help reduce environmental pressure and improve its quality.

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References

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