The Nexus between Energy Consumption Shocks and Economic Growth

This paper examines the nexus between economic growth and energy consumption shock, over period 1990-2020, in Iran. We employ a Bayesian vector autoregressive (BVAR) with new prior functions, which will give results more acceptable consequences than classical methods to study these relationships. estimates relationship shocks within multivariate BVAR framework by including gross capital formation, Labor carbon dioxide emission. The impulse responses all variables are obtained. show that, there is positive impact of on Iran this means that crucial for growth. Also, one-unit shock formation labor force emission negative.