The Impact of Wind Energy Investment on Sustainable Economic Growth in Iraq Country

Hassanzadeh, Mohammad; Hashemi Dizaj, Abdulrahim; Hassan Jadoo Al-Furtoosi, Mustafa

The Impact of Wind Energy Investment on Sustainable Economic Growth in Iraq Country

Document Type : Origional Article

Authors

Mohammad Hassanzadeh ¹

Abdulrahim Hashemi dizaj ²

Mustafa Hassan Jadoo Al-Furtoosi ³

¹ Professor, Department of Economics, Faculty of Social Sciences, University of Mohaghegh Ardabili, Ardabil, Iran

² Associate Professor, Department of Economics, Faculty of Social Sciences, University of Mohaghegh Ardabili, Ardabil, Iran

³ MSc Student, Department of Economics, Faculty of Social Sciences, University of Mohaghegh Ardabili, Ardabil, Iran

Abstract

Background and Objective: In recent years, with increasing energy costs, global warming, and the need for greater attention to the environment, attention to investment in renewable energies such as wind energy has increased sharply. Wind energy is a significant opportunity for economic growth. Investment in wind energy infrastructure can improve employment, attract investment, and stimulate economic activities in areas where wind resources are abundant. Consequently, studying the impact of wind energy on economic growth is essential to unlock the full potential of renewable energy resources, drive sustainable development, and foster a greener and more resilient economy for future generations. Given the importance and position of renewable energies such as wind energy in recent years and their major advantages over fossil fuels, and the current gap in studies of this kind in Iraq, the aim of this study is to investigate the effects of investment in wind energy on economic growth in Iraq.
Methodology: In this research, Autoregressive Distributed Lag model (ARDL) was used to examine the effect of investment in wind energy on the sustainability of economic growth in Iraq from 1995 to 2022. These methods provide the ability to examine the long-term and short-term effects of variables and allow for the analysis of the effect of investment in wind energy and other variables under study on economic growth.
Findings and Conclusion: The findings of this study showed that investment in wind energy had a positive and significant effect on economic growth in Iraq at a 90% confidence level. Also, other variables under study, including the human development index, foreign trade, and fixed capital formation, have a positive and significant effect on the sustainability of economic growth in Iraq. The error correction coefficient was -0.465 and was statistically significant, indicating that if a shock is introduced to the economic growth rate during each period, 0.465 percent of the imbalance in the economic growth rate will be adjusted and it will approach its long-term trend. Based on the results, it can be concluded that the priority of energy policies should be to increase investment in renewable energies, including wind energy.

Keywords

Wind energy

renewable energies

economic growth

Iraq Country

Subjects

Sustainable Regional Development

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