Authors

• Mohsen Mehrara ¹
• Hamid Abrishami ²
• Seyed Mohammad Hadi Sobhanian ³

¹ Associate professor of economics, Department of Economics, Tehran University

² Professor of economics, Department of Economics, Tehran University

³ Tehran University

Abstract

In this study we have dealt with the non-linear effects of economic growth on the energy consumption growth in countries depending on petroleum revenues (OPEC member countries)as well as the BRIC countries. For this end, the panel data from 1980 to 2006 for both groups of above-mentioned countries was employed and analyzed on the basis of threshold error correction model. The results indicate that in both group of countries, the effects of economic growth are non-linear so that the high economic growth rates (the economic growth rates more than threshold level of 0.01 for OPEC and 0.09 for BRIC) has increased the energy consumption growth with more severity. Of course, the effects of economic growth on the energy consumption growth in BRIC member countries are by far higher. Therefore, although an economic growth rate higher than threshold level may lead to environmental pollution in the OPEC member countries, but these countries should have less anxiety about the detrimental environmental effects of their economic growth compared to the BRIC countries.
 

Keywords

• Energy Consumption
• Economic Growth
• OPEC
• BRIC countries
• non-linear relation
• threshold error correction model