Investigating energy consumption and inflation shocks on the welfare index in OPEC member countries

Document Type : Original Article

Authors

1 PhD student, Department of Oil and Gas Economics, Marodasht Branch, Islamic Azad University, Marodasht, Iran.

2 Associate Professor Department of Agricultural Economics, Marvdasht Branch, Islamic Azad University, Marvdasht, Iran.

3 Assistant Professor, Department of Economics, Shiraz Branch, Islamic Azad University, Shiraz, Iran.

10.30510/psi.2022.360012.3914

Abstract

This article examines the sustainable economic growth of energy for OPEC member countries. and calculates an index for sustainable economic well-being for OPEC member countries, and deals with the relationship between conventional energy growth and the level of well-being in OPEC member countries. Also, considering the limitations of using GDP in measuring the level of well-being, it examines and analyzes the relationship between conventional energy consumption and the level of well-being using a sustainable economic index. It is a widespread, albeit implicit, belief that a nation's prosperity depends on its energy consumption. In this research, the impact of energy consumption on economic well-being in OPEC member countries during the period of 2007-2021 has been investigated. The calculations of the panel vector autoregression model indicate that the energy consumption shock has increased welfare in OPEC member countries. Inflationary shock also left a negative and then a positive effect on well-being at first, and the reaction of the oil income shock was first positive and then negative.

Keywords

Political Sociology of Iran
Volume 5, Issue 11
January 2023
Pages 4800-4824

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