the nonlinear impact of energy consumption on economic growth and emission in iran, smooth transition regression model.

The present study investigates the effect of energy consumption on economic growth and emission through applying non-linear framework, str† and tar‡, using the annual data from 1969 to 2017. therefore, impact of energy consumption on economic growth and emission have been tackled using two models. in both, energy consumption causes the breakpoint and effects of included variables are depending on the value of energy consumption. discussing the economic growth, the growth fossil fuel energy consumption variable is considered as a transition variable at 12 percent value. for emission beside the energy variables, total population used as control variable and for economic growth, physical capital. the prominent point in this framework is that in both of them, the fossil fuel consumption growth variable has been chosen as threshold variable which is in fact policy making variable. due to asymmetric impacts of included, variables on emission and economic growth which both are highly crucial, nonlinear approach capture the dynamics much better and gives clear descriptions to policy maker on how to react according to the state’s economy is in.