Environmental Economics
samaneh bagheri
Abstract
Introduction: Considering that Iran is one of the ten countries with the most pollution, research in this field is necessary. The goal of countries is high economic growth along with the non-emission of pollution. Environmental destruction and climate change are problems of all countries. Some people ...
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Introduction: Considering that Iran is one of the ten countries with the most pollution, research in this field is necessary. The goal of countries is high economic growth along with the non-emission of pollution. Environmental destruction and climate change are problems of all countries. Some people believe that economic growth leads to the destruction of the environment, and some others do not accept this theory. Sustainable development means that today's generation must meet its own needs without compromising the next generation. Today, countries are trying to achieve sustainable development by minimizing environmental destruction in addition to economic growth. To achieve this goal, international treaties have been concluded between the countries of the world. Many environmental protection organizations were established. One of the long debates among economists is energy consumption. On the one hand, due to economic growth and production of goods, energy consumption is needed, and on the other hand, the pollution caused by the consumption of this energy fuels environmental and non-climate pollution in countries. Because Iran is a country that sells oil and natural gas, it is a country that has a relative advantage in the field of fossil energy. Considering that Iran has a relative advantage in energy consumption, research in this field becomes necessary. Energy consumption can lead to more pollution.Materials and methods: For the first time, this research investigates the factors affecting energy consumption and pollution emission in Iran using the Markov switching method, fully adjusted ordinary least squares and dynamic ordinary least squares and Johansen's method, for the period of 1994-2021. examines In most of the studies conducted on the relationship between energy consumption and major macroeconomic variables, the influence of factors affecting energy consumption, especially factors affecting energy consumption and pollution emission in Iran, has not been paid attention to. For the first time, this research examines the experimental test of the environmental Kuznets curve with three dynamic time series methods, including fully adjusted ordinary least squares and dynamic ordinary least squares, with three optimal intervals and Johansen's method.Results: According to the results of this research, with all three dynamic time series methods, the Kuznets curve was confirmed for Iran, and this country is located in the downward part of the Kuznets curve, which means that economic growth initially leads to pollution, but later it causes pollution. Pollution is reduced. Energy consumption has had a positive and significant effect on carbon dioxide emissions. According to the research results, gross domestic product, energy consumption, foreign direct investment have a positive and significant effect on carbon dioxide emissions. Trade has a negative and significant effect on carbon dioxide emissions. The LR test showed that the model is nonlinear and the Markov switching method was used to estimate the model. The results obtained using Markov switching MS-ARMA(3,1,0) method show a positive and significant relationship between trade, GDP and energy consumption with a break on energy consumption. Due to the composition effect of Iran in energy-intensive industries, it has found a relative advantage and trade has a positive and significant effect on consumption.Keywords: FMOLS، DOLS، Kuznets Curve, Johansen
Environmental Economics
Mahdieh Rezagholizadeh; Yousef Eisazadeh roshan; Parisa Shahbedini
Abstract
Introduction: Financial development is a process through which the quantity, quality, and efficiency of financial intermediation services are improved. The more the financial system develops, the more financial resources are provided for the development of renewable energy technologies, and as a result, ...
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Introduction: Financial development is a process through which the quantity, quality, and efficiency of financial intermediation services are improved. The more the financial system develops, the more financial resources are provided for the development of renewable energy technologies, and as a result, it can have positive environmental impacts by changing the energy supply mix and reducing pollutant emissions. Financial development can affect the level of CO2 emissions and environmental quality through its impact on economic growth, capital attraction, industrial activities, energy efficiency, technological innovation, investment costs in projects, increased use of renewable energy sources, financial provision, and allocation of credit for renewable energy projects.The importance of utilizing renewable energy sources and reducing carbon dioxide (CO2) emissions on one hand, and the need for financial resources and large-scale investments for renewable energy projects on the other, highlights the role and significance of financial development in the level of environmental pollution through CO2 emissions. Therefore, considering the role and importance of financial development in the value of CO2 emissions as a criterion for environmental pollution and the significance of examining this relationship at the provincial level, this study investigates the relationship between financial development and CO2 emissions in the provinces of Iran and at the end, will test the environmental Kuznets hypothesis.Materials and Methods: This study uses the Dynamic Ordinary Least Squares (DOLS) method to investigate the relationship between financial development and CO2 emissions in the provinces of Iran during the period of 2009-2021 and answers the question of whether financial development in the provinces of Iran is environmentally friendly (Green) or not. In order to investigate the difference in the relationship between financial development and carbon dioxide emissions at the level of the country's provinces, all provinces are divided into two categories of developed and less developed provinces based on the report of the Economic Statistics Research Group of Iran Statistics Center (2022).In this study, in order to investigate the impact of financial development and other independent variables on carbon dioxide emissions, a Dynamic Ordinary Least Squares (DOLS) method is used to analyze the coefficients. For this purpose, the following model is considered:CO2it=αi+β1FDit+β2GDPit+β3EIit+β4URBit+ɛit (1)Where:CO2it: Carbon dioxide emissions in each provinceFDit: Composite index of financial developmentGDPit: Real per capita gross domestic product of the provincesEIit: Energy intensityURBit: Urbanization rateAlso, in the following, in order to test the Kuznets hypothesis in the studied provinces, model (1) is specified as model (2):CO2it=αi+β1FDit+β2FD2it+β3GDPit+β4EIit+β5URBit (2)Where:FD2it: The square of financial development. Results: The results of the estimation of models indicate that in both groups of provinces in the country, financial development is positively significantly associated with carbon dioxide emissions. Additionally, energy intensity, gross domestic product, and urbanization rate are also found to be positively and significantly related to carbon dioxide emissions. The results suggest that financial development may initially lead to an increase in carbon dioxide emissions, but with further development, this effect is reversed, resulting in a reduction in carbon dioxide emissions. This finding confirms the existence of the Environmental Kuznets Curve theory in the studied provinces during the period under investigation.Discussion: The estimation results indicate that financial development in the provinces of Iran will lead to an increase in carbon dioxide emissions. Furthermore, further investigations confirm the validity of the Kuznets relationship in the provinces of Iran, meaning that in the initial stages of development, the impact of financial development on carbon dioxide emissions will be positive, but over time this relationship becomes negative, leading to a reduction in carbon dioxide emissions.
kazem aminzadeh; Sadegh Bakhtiari; Saeed Daei-Karimzadeh
Abstract
Introduction: Over a long period of time, there can be a direct correlation between economic growth and environmental quality, a negative correlation, or a combination of the two. Many studies and research have been conducted on this topic (the relationship between economic growth and environmental quality). ...
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Introduction: Over a long period of time, there can be a direct correlation between economic growth and environmental quality, a negative correlation, or a combination of the two. Many studies and research have been conducted on this topic (the relationship between economic growth and environmental quality). In the field of sustainability economics, one of the most significant debates involves the effects of economic growth on the environment. Currently, fossil fuels are being used more and more intensively due to the industrialization of our societies. The combustion of these fuels results in the emission of a wide range of toxic and hazardous substances. This has a detrimental effect on the environment, including global warming and climate change. As a result of this study, three different forms of real GDP per capita have been examined: an inverted U shape, an N shape, and a combination of each of these three shapes. In terms of the volume of pollutants emitted from the industrial sector, the power of two and the power of three were calculated for 12 industrial provinces of the country during the period of 1376-1399 using the long-term panel econometric method of dynamic least squares. The results of the estimations are such that the environmental assumptions of Kuznets are valid for all three pollutants. In addition, an increase in real GDP per capita is associated with an increase in pollution. After reaching the maximum, the amount of pollution decreased. Finally, with a further increase in production, the rate of pollution decreased. According to the DOLS technique, the upward trend of increasing pollution continues, and the N-shaped curve has been confirmed by specifying the second and third-degree relationships of economic growth in 12 industrial provinces during the specified period by using the DOLS technique.Materials and Methods: The first objective of this study is to investigate the mean of the variables using panel unit root tests. After that, with the Kao cointegration test, we determine whether or not there is a cointegration relationship between the variables. To conclude, the coefficients of variables have been estimated using the fully modified least squares method and dynamic least squares.Results: An inverted U and an N shape of GDP were examined in three different ways; at first glance, the power of two and the power of three affected pollution levels in the industry sector. Using long-term panel econometric methods of dynamic least squares, 12 industrial provinces between 1376 and 1399 will be examined for carbon dioxide, sulfur dioxide, and sulfur trioxide. In all three cases, the estimation results are such that Kuznets' assumptions about the environment are valid.Discussion: As a result of the estimation of the models using the DOLS method in the investigation of Kuznets' environmental curve, and by specifying economic growth relationships at the second and third degree in 12 industrial provinces in the country during the selected period, the N-shaped curve has been confirmed. The inclusion of the urbanization variable in the model has led to an increasing correlation between pollution and urbanization. The consumption of fossil fuels has increased as a result of urbanization, resulting in a rise in air pollution. In the ascending part of the Kuznets environmental curve, Iran is clearly in the first stage of pollution. Furthermore, it is at the beginning of the relationship between production and pollution. Additionally, we will witness long-term pollution accumulation in the environment as pollution in Iran continues to grow at a positive rate.