Mofid University The Journal of Economic Studies and Policies 2423-4648 3 2 2017 02 19 The Causal Dynamics among Output, Energy Demand and Carbon Emissions in Iran: a Threshold Analysis The Causal Dynamics among Output, Energy Demand and Carbon Emissions in Iran: a Threshold Analysis 3 34 29784 FA Akbar Komijani Professor, Faculty of Economics, University of Tehran Masoud Salehi Rezveh Ph.D. Student, Department of Economics, Mofid University, Qom, (Corresponding Author) 0000-0002-0510-4656 Mohammad Bakhshi Zadeh Ph.D. Student, Department of Economics, Mofid University, Qom Journal Article 2017 01 30 This paper examines the causal dynamics among energy use, real <em> GDp < /em>  and <strong><em> CO₂</em></strong> emissions in the presence of regime shifts in Iran during 1347-1393 with using the Gregory and Hansen (1996a) threshold cointegration and the Toda and Yamamoto (1995) Granger causality techniques. A key aspect of this study is to investigate the influence of the Regime shift on the tri-variate relationship among these variables.  Results confirm the presence of regime shift effects in the long run inter-linkages among energy use, real <em>GDp < /em> and <strong><em> CO₂</em></strong>  emissions in Iran thus, indicating that the structural changes have both economic and environmental effects. Also, the results of the causality test reveal existence of uni-directional causality from economic growth and energy use to carbon emissions and bidirectional causality between economic growth and energy consumption. Thus, energy-efficient technologies should be used in domestic production to mitigate carbon emissions. Hence, integration of energy and environmental policies into development plans is imperative towards attaining sustainable growth and development.</em></em> This paper examines the causal dynamics among energy use, real <em> GDp < /em>  and <strong><em> CO₂</em></strong> emissions in the presence of regime shifts in Iran during 1347-1393 with using the Gregory and Hansen (1996a) threshold cointegration and the Toda and Yamamoto (1995) Granger causality techniques. A key aspect of this study is to investigate the influence of the Regime shift on the tri-variate relationship among these variables.  Results confirm the presence of regime shift effects in the long run inter-linkages among energy use, real <em>GDp < /em> and <strong><em> CO₂</em></strong>  emissions in Iran thus, indicating that the structural changes have both economic and environmental effects. Also, the results of the causality test reveal existence of uni-directional causality from economic growth and energy use to carbon emissions and bidirectional causality between economic growth and energy consumption. Thus, energy-efficient technologies should be used in domestic production to mitigate carbon emissions. Hence, integration of energy and environmental policies into development plans is imperative towards attaining sustainable growth and development.</em></em> https://economic.mofidu.ac.ir/article_29784_534e33e3c3e71bddf1dba0a0e00c814c.pdf