Environmental Ethics: The Role of Renewable Energy Consumption in Environmental Protection with Emphasis on Creative Accounting

Today, the use of renewable energy is the most important option in the field of environmental protection and environmental ethics activists emphasize this. In this study, an attempt has been made to evaluate the role of renewable energy consumption and business policy in environmental protection by emphasizing creative accounting in companies listed on the Tehran Stock Exchange. 

The present study was applied and post-event. The statistical population studied in the present study is the companies listed on the Tehran Stock Exchange. Using the systematic elimination method (screening), 166 companies have been selected as a sample. The method of data collection was the use of modern mortgage software and the website of the Securities and Exchange Commission. In order to test the research hypotheses of econometric methods such as unit root tests to check the meaning, self-explanatory method with distributed intervals to test the existence of co-integration and long-term relationships between variables, Johansen-Josilius co-integration test to determine the existence and number of co-integration vectors of the model. Error correction was used for short-term effects test and Granger causality test based on vector error correction model was used for causal analysis.

The results show that in the long run, the independent variable of renewable energy consumption (biological capacity) is significant in affecting the dependent variable Lco2 (ecological effects (environmental degradation)). Also, in the long run, the independent variables of the trade policy criterion are significant in influencing the Lco2 dependent variable. In the long run, all independent variables of economic growth are significant in influencing the Lco2 dependent variable.   

According to the research results, energy consumption has a positive effect on ecological effects (environmental degradation) in the long run. Also, trade policy variables have a positive effect on carbon dioxide emissions (environmental degradation) and economic growth has a positive effect on carbon dioxide emissions (environmental degradation).