Economic growth and environmental pollution in Iran: evidence from manufacturing and services sectors

This article aims to answer the question of whether the manufacturing (and mining) and services sectors in Iran should be reconstructed or grown as before, in order to improve the environmental quality. The global warming, if not global burning, is a dire warning about environmental pollution dangers to everyone, living on the Earth. In this field, Iran is a good candidate due to its significantly high share of CO2 emissions in proportion to the low share of economic growth in the world which can be remedied by economic growth, based on Environmental Kuznets Hypothesis (EKH). We employ the Auto-Regressive Distributed Model (ARDL) to examine the long run equilibrium relationship between CO2 emission and economic growth. The results show that, regarding EKC, the nexus of CO2 emissions and economic growth in either sector is in a sharply ascending phase. It implies that if manufacturing (and mining) and services sectors inflate, the quality of environment will decline owing to the intensive and pollutant energy-using structures. Thus, rather than growing, they should be reconstructed by importing cleaner and more efficient technologies and developing internal inventions

Environment, Energy, and Environmental Productivity of Energy: A Decomposition Analysis in China and the US

The global warming, if not global burning, is a dire warning about environmental pollution dangers to everyone, living on the only one Earth. This study aims to measure relative contributors to the environmental quality changes during 2002-2011 using Logarithmic Mean Divisia Index in China and the US. Since these countries are the biggest polluters in the world, the decomposition technique is used to cut their wide environmental issues into the tiny bits of problems, being easy to cope with. Moreover, we employed Environmental Performance Index (EPI) to evolve the concept of Environmental Productivity of Energy (EPE). The results suggest that economic growth and income equality are environmentallyfriendly while energy consumption is environmentally-unfriendly; and the Environmental Productivity of Energy (EPE) and technology progress are environmentally-moody (with various effects on environment). Consequently, the policy makers are advised to develop those economic sectors which are independent of pollutant energies; to replace the black energies by the green ones; and to invest on the research about the products whose demand is price inelastic

Price and Income Elasticities of Gasoline Demand in Iran: Using Static, ECM, and Dynamic Models in Short, Intermediate, and Long Run

Price and income elasticities of gasoline demand show whether the price policy, pursued by the Iranian government, can decrease the high gasoline consumption sufficiently or not. Since the two oil price shocks in 1970 and 1973, interest in the study of oil products demand has increased considerably, especially on gasoline. High gasoline consumption is a serious crisis in Iran, posing economically, politically, and environmentally threats. In this study, the elasticities are estimated over three intervals, short run, intermediate run, and long run in Iran during 1976-2010, by putting the estimates of Error Correction Model (ECM), static model, and dynamic model in an increasing order, respectively. The short run, intermediate run, and long run price elasticities are −0.1538, −0.1618, and −0.3612 and the corresponding income elasticities are 0.2273 - 0.3581, 0.4636, and 0.7284, respectively. Not only do these elasticities imply that the gasoline demand is price and income inelastic but also the adjustment velocity, estimated by ECM, is a low point at −0.1942. Based on the estimations, the gasoline demand responds to the changes of price and income slightly and slowly. Therefore, policy makers should develop more strategies to reduce gasoline consumption, for example, substitute goods, public transportation systems, and environmental standards setting

Economic growth and environmental pollution in Iran: evidence from manufacturing and services sectors

This article aims to answer the question of whether the manufacturing (and mining) and services sectors in Iran should be reconstructed or grown as before, in order to improve the environmental quality. The global warming, if not global burning, is a dire warning about environmental pollution dangers to everyone, living on the Earth. In this field, Iran is a good candidate due to its significantly high share of CO2 emissions in proportion to the low share of economic growth in the world which can be remedied by economic growth, based on Environmental Kuznets Hypothesis (EKH). We employ the Auto-Regressive Distributed Model (ARDL) to examine the long run equilibrium relationship between CO2 emission and economic growth. The results show that, regarding EKC, the nexus of CO2 emissions and economic growth in either sector is in a sharply ascending phase. It implies that if manufacturing (and mining) and services sectors inflate, the quality of environment will decline owing to the intensive and pollutant energy-using structures. Thus, rather than growing, they should be reconstructed by importing cleaner and more efficient technologies and developing internal inventions

Price and Income Elasticities of Gasoline Demand in Iran: Using Static, ECM, and Dynamic Models in Short, Intermediate, and Long Run

Price and income elasticities of gasoline demand show whether the price policy, pursued by the Iranian government, can decrease the high gasoline consumption sufficiently or not. Since the two oil price shocks in 1970 and 1973, interest in the study of oil products demand has increased considerably, especially on gasoline. High gasoline consumption is a serious crisis in Iran, posing economically, politically, and environmentally threats. In this study, the elasticities are estimated over three intervals, short run, intermediate run, and long run in Iran during 1976-2010, by putting the estimates of Error Correction Model (ECM), static model, and dynamic model in an increasing order, respectively. The short run, intermediate run, and long run price elasticities are −0.1538, −0.1618, and −0.3612 and the corresponding income elasticities are 0.2273 - 0.3581, 0.4636, and 0.7284, respectively. Not only do these elasticities imply that the gasoline demand is price and income inelastic but also the adjustment velocity, estimated by ECM, is a low point at −0.1942. Based on the estimations, the gasoline demand responds to the changes of price and income slightly and slowly. Therefore, policy makers should develop more strategies to reduce gasoline consumption, for example, substitute goods, public transportation systems, and environmental standards setting

Environment, Energy and Environmental Productivity of Energy: A Decomposition Analysis in China and the US

The global warming, if not global burning, is a dire warning about environmental pollution dangers to everyone, living on the only one Earth. This study aims to measure relative contributors to the environmental quality changes during 2002-2011 using Logarithmic Mean Divisia Index in China and the US. Since these countries are the biggest polluters in the world, the decomposition technique is used to cut their wide environmental issues into the tiny bits of problems, being easy to cope with. Moreover, we employed Environmental Performance Index (EPI) to evolve the concept of Environmental Productivity of Energy (EPE). The results suggest that economic growth and income equality are environmentally-friendly while energy consumption is environmentally-unfriendly; and the Environmental Productivity of Energy (EPE) and technology progress are environmentally-moody (with various effects on environment). Consequently, the policy makers are advised to develop those economic sectors which are independent of pollutant energies; to replace the black energies by the green ones; and to invest on the research about the products whose demand is price inelastic

Analysis of the relationship between economic growth and environmental pollution in Iran (evidence from three sections of land, water and atmosphere)

Never in the history of concerns about environmental pollution caused by economic growth is not as much today. Economically, the country where production is mainly based on the polluting industries of oil, gas and petrochemical projects those are not exempt from this. Environment of a desert country with a different climate, the sea and the forest, which can be affected by the polluting industry so both economically and environmentally suitable case for examining the relationship between economic growth and environmental pollution in parts of atmosphere, water and land. The amount of carbon dioxide emissions per capita, biochemical oxygen demand per capita, per capita and GDP per capita deforestation, respectively, as indicators of pollution, atmosphere, water, land and economic growth were considered. In this study, an inverted U-shaped environmental Kuznets curve hypothesis is about the ordinary least squares method having been tested. The results indicate that the N inverse relationship (И) exists between economic growth and pollution of the atmosphere and water in addition to confirming the Kuznets inverted U, the other part of this equation is also introduced. But the ground upside down U-shaped relationship is obtained which confirms the Kuznets hypothesis. So when the economy is up or down enough measures to mitigate the effects of the oil, gas and petrochemical pollution of the atmosphere, water and land should be considered

Energy, Environment, and Economy Interactions in Iran with Cointegrated and ECM Simultaneous Model

Nobody on the planet is going to be untouched by the impacts of climate change. This study aims to arrange the various socioeconomic elasticities of environmental pollution in order of priority, depending on the length of time period, to establish the most effective policy. We employed a simultaneous equations system to find out the various socioeconomic elasticities in the long run and short run in Iran during 1974-2012. Based on the results, per capita CO2 emissions, GDP, energy consumption show the strongest interactions (relationships and elasticities) in the equations system as a whole in the long run. Moreover, it is the trade openness, labour force, financial development, and urbanization which show the most decisive effects in the short run. So the effectiveness of the system variables depends on the time period. Trade openness, labour force, and financial development play the most leading role in the short run, notwithstanding their limited role in the long run. However, energy consumption elasticity of CO2 emissions and urbanization elasticity of energy consumption are among the largest elasticities both in short run and long run. Therefore, energy consumption, economic growth and urbanization should be reduced and financial sector should be grown to decrease the environmental pollution. Moreover, economic growth is an effective factor for the long run; and trade openness and financial development are effective for the short run but urbanization and energy consumption are influential for both the long run and short run policies

Environmental pollution and economic growth elasticities of maritime and air transportations in Iran

Purpose – The purpose of this paper is to examine the effects of maritime and air transportation on the environment and economy of Iran. The authors specify two dynamic models of the environmental pollution and the economic growth. Then, the authors estimate the environmental and economic elasticities of maritime and air transportation in short run and long run in Iran during 1978–2012. Design/methodology/approach – The authors estimate the environmental and economic elasticities of maritime elasticities in short and long run, using simultaneous equations system. Findings – The findings indicate that the short- and long-run environmental pollution elasticities of maritime transportation are higher than those of the air ones. In addition, the economic growth elasticities are greater in the air transportation compared to maritime one. As a result, the maritime transportation is more pollutant and less productive in Iran in comparison with the air transportation. Originality/value – The policymakers are advised to improve the infrastructure of maritime transportation from both the environmental and economic point of views. Consequently, the air transportation is considered as a cleaner and more beneficial transportation m