Renewable, Non-Renewable Energy Consumption and Energy Security Risk in Iran: An Application of Structural VAR

Energy security is one of human society's most important topics, affecting many tensions and relations between different countries. Considering the breadth of the concept of energy security and its mutual effects in the economic, political, social and environmental fields, it has become an essential concern of governments and thinkers. The energy security risk index examines a country’s level of security risk e factors affecting energy security in geopolitical, economic, political and environmental fields by measuring 29 determining components. The main goal of the current research is to investigate the impact of renewable and non-renewable energy consumption on the energy security risk in Iran from 1980 to 2020 using the structural vector autoregression (SVAR) method. The obtained results show that the consumption of renewable energy has a negative and decreasing effect, and the consumption of non-renewable energy has a positive and increasing impact on Iran’s energy security risk. Also, the added value variables of the industry sector and government size have a positive and increasing effect on the energy security risk in Iran. On the other hand, the results of this research show that one of the reasons for the increasing trend of the energy risk index for Iran is the rising consumption of non-renewable energies. Following that, the amount of environmental pollution has also been increasing; Therefore, to prevent this, policies should be implemented to reduce the consumption of this type of energy and to replace it with other energy, including renewable energy.