energy transition modelling in iran: an evidence from the ardl bound testing method

The challenge of environmental pollution and climate change have made countries to develop energy transition progress meaning move from non-renewable energy sources towards renewable ones. this paper seeks to analyze energy transition pattern in iran by modeling it using the ardl bounding testing method over the period of 1993-2018. the empirical estimations depicted that in the long-run economic growth and inflation rate negatively impact on energy transformation of iran, while increase in carbon dioxide emissions and appreciation of iran’s national currency accelerate the energy transition process in iran. regarding the short-run relationship, the major results represented an evidence of positive impact of exchange rate on iran’s energy transition process, while the other variables have negative coefficient. as policy implications, we recommended lowering budget dependency to oil revenues, and issuing short-run de-carbonizing policies in iran.