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Investigating the Nonlinear Relationship between Energy Security and Environmental Innovation in Iran (Markov Switching Model Approach)
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Ali Feghehmajidi *1   |
| 1- , a.f.majidi@gmail.com |
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Abstract: (14 Views) |
Investigating the impact of energy security on environmental innovation from an economic perspective seems to be a strategic necessity because dependence on fossil fuels exposes countries to price shocks. Still, the existence of innovation in clean energy reduces this risk. Investigating the relationship between energy security and environmental innovation is like a roadmap that prevents short-term energy crises and creates a more sustainable future. It is an essential and inevitable issue for all countries, especially developing economies. Therefore, the present study aims to investigate the impact of energy security on environmental innovation in Iran during the period from 1990 to 2020 using the nonlinear Markov switching method. Estimates indicate that there are two suitable regimes for this issue, in the first regime there is a positive shock and in the second regime there is a negative shock, but the level of sustainability in the first regime is 17 years and in the second regime is 26 years, and the reason for the greater sustainability in the negative regime (crisis) is the need and adaptation to new conditions that must be applied in the presence of a negative shock to reduce the negative effects and the adopted approach and strategic economic decisions of governments, companies, and economic actors to be applied by the new conditions. The results further show that the effect of energy security on environmental innovation is very tangible and has a negative but significant effect on environmental innovation, and the reason for this is due to dependence on fossil fuels, reduced competitiveness of renewable energy, and limited access to more advanced technology in Iran, and this result is in line with the desire for sustainability in the negative regime.
JEL Classification: O13, O31, P18.
Keywords: Energy security, Environmental innovation, Nonlinear method.
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| Keywords: JEL Classification: O13, O31, P18.
Energy security, Environmental innovation, Nonlinear method. |
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Full-Text [PDF 1307 kb]
(21 Downloads)
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Type of Study: Research |
Subject:
Energy Economic
Received: 2025/04/11 | Accepted: 2025/09/4 | Published: 2025/12/31 | ePublished: 2025/12/31
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