Evaluation of Determinants Influencing the Environmental Sustainability Index in Iran
Articles in Press, Accepted Manuscript, Available Online from 11 November 2025
https://doi.org/10.22034/envj.2025.542985.1551
Navid Kargar Dehbidi, Mohammad Hassan Tarazkar, Jalal Henareh
Abstract Introduction: Excessive exploitation of natural resources, rapid urbanization, and reliance on fossil fuels are major factors that disrupt ecological balance and pose serious threats to environmental sustainability. One of the modern approaches to measuring environmental sustainability is the use of the Load Capacity Factor (LCF). This indicator, defined as the ratio of bio-capacity to ecological footprint, reflects whether a country operates within its bio-capacity or exploits natural resources beyond their regenerative capacity. In recent years, researchers have increasingly preferred using the Load Capacity Factor (LCF) over indicators such as pollution emissions and ecological footprint, as LCF offers a more comprehensive perspective on the relationship between economic development, energy consumption, and environmental sustainability. In this study, the effects of economic growth, renewable energy, exports, and imports on LCF were examined within the framework of the Environmental Kuznets Hypothesis (EKC) for the period 1990–2021. The findings provide valuable insights into the current state of environmental sustainability and can support future research and fact-based and effective environmental planning.
In this study, data on the load capacity factor (i.e., the ratio of biocapacity to ecological footprint), GDP per capita, renewable energy consumption, urbanization, exports, and imports were obtained from reliable sources for the period 1990–2021. After testing the stationarity of the variables and performing the necessary econometric analyses, the Autoregressive Distributed Lag (ARDL) model was employed to estimate the coefficients.
Results: Iran’s environmental sustainability has been on a declining trend over the past thirty years, with the sustainability level reduced to one-third by the end of the period. This highlights environmental unsustainability as a serious threat in the country. The study’s findings show that the use of clean energy has a positive effect on the stability of the load capacity factor, as expected. Specifically, a 1% increase in clean energy use, while holding other factors constant, is associated with an approximately 0.14% increase in the environmental sustainability indicator in the long run. Also, the results indicate that a 1% increase in imports is expected to raise environmental sustainability by approximately 0.43% in the long run. In contrast, an increase in exports of goods and services leads to greater environmental instability. Specifically, a 1% rise in exports is associated with about a 0.25% decline in the environmental sustainability indicator.
Discussion: Policies aimed at replacing fossil fuels (oil, gas, and coal) with renewable energy sources such as solar, wind, geothermal, and hydropower can help reduce environmental risks. By mitigating risks such as greenhouse gas emissions, air pollution, and climate change, it becomes possible to achieve sustainable economic growth and development. The findings confirm that Iran’s export portfolio is largely composed of low-tech, energy-intensive, and polluting products that consume significant amounts of energy and natural resources, contributing to environmental degradation. The findings confirm that Iran’s export portfolio is largely composed of low-tech, energy-intensive, and polluting products that consume significant amounts of energy and natural resources, contributing to environmental degradation. Therefore, a comprehensive review of export policies, including the imposition of duties and environmental taxes on polluting export goods, is essential for achieving sustainable development. More broadly, the environmental implications of research on the effects of renewable energy and commodity trade on environmental sustainability should be carefully considered in macroeconomic policymaking.
Assessing the Impact of Environmental Degradation on Food Security
Articles in Press, Accepted Manuscript, Available Online from 13 December 2025
https://doi.org/10.22034/envj.2025.533160.1521
Negar Qasemi, Somayeh Amirtaimoori, Mohammad Reza Zare Mehrjerdi, Hamid Reza Mirzaei Khalilabadi
Abstract Introduction: Currently, achieving sustainable food security—which is regarded as one of the most fundamental requirements for economic, social, and human development at both national and international levels—is facing numerous threats. Rapid population growth, the excessive and unsustainable exploitation of soil, water, and energy resources, along with the intensification of climate change, are among the most significant factors that have not only disrupted ecological balance but have also posed serious challenges to the path toward achieving sustainable development goals. In this context, environmental degradation caused by human activities—especially the emission of greenhouse gases—has increasingly drawn the attention of researchers and policymakers as a major factor contributing to the decline in both the quality and quantity of agricultural production. These emissions have not only led to global warming and the emergence of phenomena such as droughts, floods, and shifts in precipitation patterns but have also disrupted the stable climatic conditions necessary for food production. Accordingly, the present study aims to examine the impact of environmental degradation, with a particular focus on greenhouse gas emissions, on food security (food production) in D8 member countries.
Materials and Methods: To conduct the empirical analysis, an econometric model was developed with the food production index as the dependent variable, and agricultural land, population growth, greenhouse gas emissions (as an indicator of environmental degradation), and food price inflation as independent variables. In order to estimate the model parameters, the panel data method was employed. First, the stationarity of the variables was tested using the Levin, Lin, and Chu (LLC) unit root test. Due to the non-stationarity of one of the variables, the Kao cointegration test was applied to confirm the existence of a long-term relationship. Based on the results of the F-Limer and Hausman tests, a fixed effects model was selected and estimated using the Generalized Least Squares (GLS) method. The data for the period 1994 to 2023 were obtained from the World Bank.
Results: The findings indicate that food price inflation and agricultural land have a positive and significant effect on food production index. Specifically, a one-unit increase in agricultural land leads to a 0.1186 unit increase in the food production index, while a one-unit rise in food price inflation increases food production index by 0.0194 units. In contrast, population growth and environmental degradation have a negative and significant effect on food production index. A one-unit increase in population growth results in a 14.9712 unit decrease in food production index, and a one-unit increase in greenhouse gas emissions leads to a 0.2817 unit decline in food production index.
Discussion: The results of this study highlight that environmental degradation is a significant threat to food production capacity in D8 countries. The rising levels of greenhouse gas emissions and their consequences—such as climate change, droughts, and global warming—directly undermine food security. Additionally, rapid population growth without proportional development in agricultural infrastructure and natural resources places extra pressure on food systems. On the other hand, rising food prices may serve as an economic incentive that encourages farmers to increase production. Accordingly, smart policymaking in four key areas—agricultural land conservation, environmental protection, population growth management, and strengthening economic incentives—is essential to enhance food production capacity in these countries.
Analysis the Effects of Green Tax Shock on Major Polluting Industries Using Panel Vector Autoregressive Model (PVAR)
Articles in Press, Accepted Manuscript, Available Online from 09 March 2026
https://doi.org/10.22034/envj.2026.558945.1581
Habib Habibizad, Hashem Zare, Mehrzad Ebrahimi
Abstract Abstract
Introduction: Environmental degradation and climate change are considered to be the biggest challenges to sustainable development in recent years because economic and social development depends on the sustainability and proper functioning of the environment. In the last two centuries, economic activities that have been accompanied by extensive consumption of energy, especially fossil fuels, have caused irreparable damage to the environment at regional and global levels, and human health has faced a serious threat. In response to these challenges, governments provide incentives to minimize environmental damage through tools such as environmental taxes. These taxes imply the cost of pollution emissions and are levied by the government through taxes on emissions of pollutants into the air, water, and soil.
Materials and Methods: In this paper, using panel data and within the framework of the Panel Vector Autoregression (PVAR) model, the effects of the green tax shock on selected variables of major polluting industries have been analyzed. In order to achieve the above-mentioned objectives, the statistics and information required for the studied industries, which account for a large part of the country's energy consumption, include: The transportation industry, refining industries, power plant industries, rubber and plastic industries, non-metallic mineral industries, food and beverage industries, basic metal industries, chemical materials and products industries, textile manufacturing industries, and paper and paper products manufacturing industries were extracted and used from statistical sites during the period from 1385 to 1401.
Results: The results of the present study showed that the green tax shock has a negative effect on the variables of value added in selected industries, energy consumption, gross fixed capital formation value, and research and development costs in selected industries, but the same shock has a positive effect on employment in selected industries in most periods, and the variable of export power of selected industries. With the explanation that, for example, the desired shock in period 10 and beyond has an effect of between -0.05 percent and -0.07 percent on the value added of the industries under study.
Discussion: Green tax, as one of the new tax bases, has important allocation effects in addition to its revenue effect. Considering the impact of this type of tax on selected variables of the studied industries, it is suggested: Due to the results of various studies on the effects of imposing this type of tax on improving various economic indicators, such as the health index, the income distribution index, and government revenues, as well as improving the energy consumption index and consequently reducing pollution and other indicators To prevent disruptions in the value-added trend in polluting industries, economic policymaking in the country should focus on creating stability and strengthening other effective components for promoting value-added and production, such as economic security and stability in macroeconomic variables such as exchange rates and international trade flows, human capital, and the quality of knowledge-based production. It is recommended that industries that have taken effective steps to reduce pollutant emissions, with the approval of the Environmental Organization, be given a discount on the emission tax rate or a discount on other tax bases, which from this perspective will positively influence the growth of the industries in question. Since the purpose of imposing any type of tax is not only to generate revenue for the government, and given that the imposition of taxes affects real economic variables, it is recommended to increase tax savings for growth in polluting industries by applying decreasing rates or various tax exemptions (as a result of reducing pollution).
Assessing the Asymmetric Effects of Climate Change on Iran’s Economic Growth within a Macro-Financial Framework: An MT-NARDL Approach
Articles in Press, Accepted Manuscript, Available Online from 11 April 2026
https://doi.org/10.22034/envj.2026.557780.1580
mohsen salehi ardakani, MAHDI KHODAPARAST MASHHADI, masood homayounifar, narges salehi nia
Abstract Introduction:
Globally, climate change is now recognized not merely as an environmental challenge but also as a structural macro-financial risk. Through multiple economic and financial transmission channels, it constrains policy space and fundamentally reshapes the long-term growth trajectory of vulnerable economies—particularly Iran. In the domestic research literature, scholarly focus has predominantly centered on the sectoral impacts of climate change, while systematic linkages between climate-related risks and key macro-financial variables have been largely neglected. To address this conceptual gap, this study examines the asymmetric and regime-dependent effects of climate change on Iran’s economic growth. Departing from conventional linear approaches, the analysis explicitly accounts for potential shifts in both the direction and magnitude of these effects under varying macroeconomic conditions—such as sanctions regimes, oil price volatility, or fiscal stress—thereby providing a more nuanced and comprehensive basis for formulating resilient and sustainable economic policy.
Materials and Methods:
We employ a multi-threshold nonlinear autoregressive distributed lag approach (MT-NARDL). The dependent variable is the growth rate of real GDP per capita, and the main explanatory variable is the ND-GAIN index, used as a proxy for climate vulnerability and adaptive capacity. To identify threshold effects, ND-GAIN is decomposed into four regimes: large negative shocks (REG1), small negative shocks (REG2), small positive shocks (REG3), and large positive shocks (REG4). Annual data for Iran over 1995–2023 are used, along with macro-financial and institutional controls including the exchange rate, inflation, domestic credit, gross capital formation, stock-market trading activity, and government effectiveness. The existence of a long-run relationship is confirmed via the bounds testing procedure, and model stability is assessed using standard coefficient stability diagnostics.
Results:
The findings indicate that climate-related effects on Iran’s economic growth are decisively asymmetric and depend on shock magnitude. In the long run, a 1% increase in large negative shocks reduces GDP per capita growth by about 0.29% (statistically significant), whereas small negative shocks have no significant long-run effect. On the positive side, a 1% increase in small positive shocks raises growth by approximately 0.065%, while large positive shocks increase growth by about 0.42%. In the short run, a 1% rise in large and small negative shocks lowers growth by roughly 0.361% and 0.098%, respectively. By contrast, a 1% increase in large positive shocks raises growth by about 0.536%, and small positive shocks exert positive contemporaneous and lagged effects (around 0.098% in the current period and 0.078% with one lag). The error-correction term (CointEq(−1) = −0.7346) implies that nearly 73% of disequilibrium adjusts each period. Macro-financial controls behave as expected: the exchange rate and inflation are growth-reducing, while credit and capital formation are growth-enhancing; government effectiveness also has a positive and significant impact on growth.
Discussion:
Overall, the results suggest that the climate–growth relationship in Iran does not follow a linear pattern. Severe adverse climate shocks can persistently undermine growth, whereas improvements—especially under positive regimes—can strengthen growth prospects. Accordingly, climate policy should move beyond reactive measures by integrating climate-risk management into the macro-financial framework, prioritizing reductions in vulnerability to large negative shocks and reinforcing pathways that build climate resilience.
A Model for Sustainable Development in Iran’s Economy with Emphasis on the Components of Islamic Economics
Articles in Press, Accepted Manuscript, Available Online from 20 April 2026
https://doi.org/10.22034/envj.2026.559084.1584
Saeed Farahani Fard, elahe keshtkar, mohamadhasan maleki
Abstract This study aims to propose a practical model for sustainable economic development in Iran, emphasizing the components of Islamic economics. Iran faces critical challenges, including heavy reliance on oil revenues, chronic inflation, double-digit unemployment—particularly among youth—economic corruption, severe air pollution, depletion of groundwater resources, and high greenhouse gas emissions from fossil fuel consumption. Islamic economics, with its focus on ethical principles in production, consumption, and wealth distribution, social justice, reduction of inequalities, equitable resource allocation, and respect for human rights, provides a comprehensive, human-centered, and indigenous framework for achieving sustainable development. The proposed model identifies, prioritizes, and analyzes causal relationships among key components, offering practical policy recommendations to reduce oil dependency, strengthen domestic production, improve governance, and preserve natural resources. This model can serve as a reference for policymakers in alignment with the Islamic-Iranian model of progress and sustainable development goals.
The research is applied and action-oriented, employing a mixed-method (qualitative-quantitative) and multi-stage approach. The theoretical population consisted of experts in Islamic economics and sustainable development, with purposive and judgmental sampling. Fifteen faculty members with doctoral degrees and associate or full professorship ranks were selected. In the first stage, over 27 initial components were identified through systematic literature review and semi-structured interviews with experts, continuing until theoretical saturation. Data were coded and transformed into main themes using thematic analysis. In the second stage, fuzzy Delphi method with a five-point Likert scale and a threshold of 0.7 was applied in three rounds to screen components, resulting in 10 key factors. In the third stage, fuzzy DEMATEL technique was used to examine causal relationships. The direct-relation matrix was formed based on experts’ fuzzy opinions, linearly normalized, and the total-relation matrix was calculated. Indices of influence (D), dependence (R), prominence (R+D), and net effect (R–D) were extracted to classify components into cause and effect groups.
Findings confirmed 10 key components: establishing sustainable financial and investment frameworks, developing a resilient economy and supporting domestic production, promoting green Islamic financial instruments, empowering local communities and cooperatives, enhancing energy efficiency and renewable energy development, advancing sustainable public transportation and reducing urban pollution, promoting Islamic-Iranian lifestyle in consumption patterns, strengthening religious-ethical education related to sustainability, enhancing good governance, and promoting transparency, anti-corruption measures, and systematic accountability. Fuzzy DEMATEL analysis identified four components with positive net effects as primary causal factors: 1. establishing sustainable financial and investment frameworks (highest interaction intensity), 2. transparency, anti-corruption, and systematic accountability, 3. developing a resilient economy and supporting domestic production, 4. enhancing good governance. Effect components included promoting green Islamic financial instruments, empowering local communities, improving energy efficiency, developing sustainable transportation, promoting Islamic-Iranian lifestyle, and strengthening religious-ethical education. Causal relationships demonstrated that focusing on financial infrastructure, transparency, and resilient economy reinforces other sustainability dimensions in a chain reaction.
This study provides a practical framework for policymakers to accelerate sustainable development by prioritizing causal components. Strengthening Islamic financial systems, improving governance, reducing oil dependency through support for domestic production and cooperatives, and integrating Islamic principles into education and consumption culture can enhance economic resilience. Practical recommendations include enacting comprehensive green sukuk legislation, launching a digital transparency system, allocating resilient budgets for knowledge-based industries and cooperatives, and implementing sustainability education programs. This model not only addresses Iran’s challenges but also offers an indigenous framework for Islamic countries. Future research can validate the model using empirical quantitative data.
Environmental Impacts of Greenfield FDI on Entrepreneurship in Iran
Articles in Press, Accepted Manuscript, Available Online from 20 April 2026
https://doi.org/10.22034/envj.2026.564780.1593
kazem abedzadeh, behzad salmani, Mohammad Reza Salmani Beshak
Abstract Introduction: This study examines the role of greenfield foreign direct investment in Iran, focusing on the pollution haven hypothesis. According to this hypothesis, the inflow of capital along with polluting technologies can erode the entrepreneurial ecosystem by degrading environmental quality and weakening the health and productivity of the workforce. In contrast to this view, the technological halo hypothesis believes that these investments can help foster innovation. Accordingly, the main objective of the study is to measure the direct and indirect effect of greenfield investment on entrepreneurship, with a special emphasis on the mediating role of pollution. This analysis seeks to fill a gap in which previous studies have mainly focused on the quantity of investment and have ignored the key role of pollution. Finally, the study attempts to determine which of these two narratives is more consistent with the economic realities of Iran in the period 2008-2023.
Materials and Methods: In order to separate direct and indirect effects, a two-equation analytical framework was designed. The first equation measures the direct effect of greenfield investment and pollution on the entrepreneurial activity index and includes variables such as economic growth, fear of failure, and entrepreneurial intention to control for macro and behavioral factors in the model. The second equation specifically dissects the pollution channel and estimates the effect of greenfield investment on per capita carbon dioxide emissions by controlling for variables such as energy intensity and institutional quality. Given the limitations of time series data and the inherent ambiguity in economic variables, fuzzy regression was used instead of classical methods. This approach, by estimating coefficients as an interval, takes into account uncertainty in the results and provides a more reliable analysis in conditions of limited data.
Results: The results of the fuzzy regression analysis depict a clear and alarming narrative. The findings showed that Greenfield foreign direct investment had a significant and negative direct impact on entrepreneurial activity in Iran (fuzzy coefficient: -1.0566). At the same time, the analyses also revealed an indirect and destructive channel: this type of investment has led to a significant increase in the level of environmental pollution (fuzzy coefficient: +0.0636). This increasing pollution, in turn, has a negative and inhibitory effect on entrepreneurship (fuzzy coefficient: -0.6184). As a result, the negative direct effect of investment is reinforced by a negative indirect effect (with an approximate product of 0.039) that passes through the pollution path. Overall, the dominant pattern in the period under study has been that the entry of Greenfield capital has not only not helped entrepreneurship flourish, but has also contributed to its further weakening by intensifying pollution.
Discussion: The evidence from this study strongly suggests that the pattern of foreign investment in Iran during the study period is more consistent with the pollution haven hypothesis. The combination of low technological quality of incoming projects and weak regulatory institutions to enforce environmental standards seems to have prevented the realization of positive technological spillovers. By highlighting the role of investment quality over quantity, this study provides a clear policy message: it is time for policymakers to move from an unconditional capital absorption approach to a smart and selective absorption strategy. Measures such as establishing a technological screening system for projects, making incentives conditional on environmental performance, and strengthening transparency and monitoring of pollutant emissions are essential steps to manage this negative channel. Only then can foreign investment be transformed from a threat to a real driving force for the growth of the knowledge-based economy and innovative entrepreneurship in Iran.
Measuring the Stochastic Behavior of the Ecological Footprint of Different Sectors in Iran
Articles in Press, Accepted Manuscript, Available Online from 02 June 2026
https://doi.org/10.22034/envj.2026.554486.1571
Ali Rostami, kosar Alibeigi Beni
Abstract Introduction: Measuring the "stochastic behaviors" of environmental indicators is important to determine the sustainability and effectiveness of environmental policies.On the one hand, if an ecological index is non-stationary and contains a unit root (a random walk process), then when a shock is introduced to it, the fluctuations created will not be damped and can have permanent effects on the environment. On the other hand, if the ecological index is stationary, the effects of shocks are temporary and the series returns to its long-term average or trend path. In this case, shocks such as innovations or policy interventions do not affect environmental quality in the long run. Also, if the ecological index is non-stationary, the past trend of this variable is not useful in predicting the future situation, or ultimately has very little effect on this prediction. Conversely, if it is stationary, past values and their changes can be used to predict the future trend of the variable. Accordingly, this research aims to investigate the stability and persistence of shocks to different parts of the Iranian environment.
Method: The present descriptive-analytical and applied study, using time series data from 1961 to 2022, has examined the stability and persistence of shocks to environmental indicators in Iran using three general indicators: Ecological Footprint (EF), Biological Capacity (BC), and Load Capacity Factor (LCF), and six different components of EF. To obtain reliable results, unit root tests in three categories have been used: A. Conventional unit root tests including: ADF, PP, DF-GLS, KPSS, and NP, B. Structural break Unit Root and Least Squares Residual Augmented Unit Root Tests including: ZA and RALS-ADF, and C. Fourier unit root tests including: F-ADF, F-KPSS, and FFFFF-DF.
Results: Based on all unit root tests, carbon footprint, forest footprint, EF, BC and LCF are non-stationary and have unit roots. The grazing footprint component except in BP and RALS-ADF tests and the fisheries footprint component except in BP test are non-stationary and have unit roots in other unit root tests. In contrast, the cropland and built-up components are stationary and do not have unit roots based on most unit root tests, especially the Fourier unit root tests.
Discussion: According to the results of the unit root test, it can be said that environmental shocks and policies aimed at reducing environmental degradation will have a sustainable and continuous effect on the general sectors of demand, supply, and environmental balance, and the components: carbon footprint, forest footprint, grazing footprint, and fishing grounds footprint. In contrast, environmental shocks and policies will have a transient and temporary effect on the components of cropland footprint and built-up footprint. Accordingly, a reliable statistical prediction of the future behavior of cropland footprint and built-up footprint is possible based on their past behavior, and therefore, policymakers can use prediction as a basic policy tool to combat environmental degradation in these two sectors. Accordingly, a reliable statistical prediction of the future behavior of cropland footprint and built-up footprint is possible based on their past behavior, and therefore, policymakers can use prediction as a basic policy tool to combat environmental degradation in these two sectors.
Environmental and International Trade (Structural Vector Autoregression Approach)
Articles in Press, Accepted Manuscript, Available Online from 20 July 2026
https://doi.org/10.22034/envj.2026.532095.1516
Nasim Haji Haji Aghazadaeh, saleh ghavidel, Mir Hossein Mousavi, khosrow azizi
Abstract Abstract
In recent decades, examining the relationship between economic development, the expansion of international trade, and environmental outcomes—particularly carbon dioxide (CO₂) emissions—has become one of the key topics in environmental economics literature. The main concern of countries is how to balance economic growth with environmental preservation while simultaneously pursuing sustainable development. This study employs a Structural Vector Autoregression (SVAR) model and uses data from 30 geographic regions worldwide over the period 2000–2021 to investigate causal relationships between economic growth, trade freedom,
and CO₂ emissions. The analysis is conducted under two separate scenarios to independently assess the effect of each
variable. The results indicate that the impact of economic growth on CO₂ emissions is on average 40–60% stronger than the effect of free trade. Moreover, the response of different regions to economic and trade shocks does not follow a uniform pattern and is fully dependent on economic structure, development level, and degree of industrialization. In developed regions such as Europe and Central Asia, positive economic growth shocks lead to significant increases in CO₂ emissions, whereas in less-developed regions such as IDA member countries and Sub-Saharan Africa, this effect is very limited and in some cases statistically insignificant. These findings emphasize structural differences in the relationship between growth, trade, and the environment and suggest that environmental policy should be tailored to the development level of each region. Accordingly, implementing coordinated global policies—such as international carbon taxation, clean technology transfer, investment in renewable energy, and environmental standardization in global trade—can help control CO₂ emissions worldwide. Therefore, international cooperation and a multilateral approach to climate change mitigation are considered indispensable and should be supported by continuous political will and institutional backing.
Materials and Methods
This study aims to analyze the causal relationships among free trade, economic growth, and CO₂ emissions using reliable World Bank data for 30 geographic regions worldwide during 2000–2021. The main variables in this paper include the trade-to-GDP ratio (trade freedom index), real GDP growth rate, and CO₂ emissions. Prior to model estimation, stationarity tests of the time series and optimal lag selection based on information criteria were performed. Then, the SVAR model was estimated under two scenarios: in the first scenario, economic growth was considered the primary causal variable, and in the second scenario, free trade acted as the exogenous cause. To analyze the dynamic responses of variables to shocks, impulse-response functions were employed to better capture both short-term and long-term effects.
Results and Discussion
The results from the impulse-response functions indicate that in developed regions, economic growth shocks lead to significant increases in CO₂ emissions, reflecting a strong dependence of these countries on energy-intensive industries. In contrast, in low-income countries, due to the high share of agriculture, low energy consumption, and weak industrial infrastructure, this relationship is weak, less significant, and sometimes even neutral. Moreover, it was found that overall, economic growth has a greater impact on environmental pollution than free trade. Therefore, it is recommended that global policies focus on instruments such as carbon taxation, promotion of clean technologies, green investment, and harmonization of environmental regulations in international trade to accelerate the reduction of pollutants.
The Impact of Economic Policy Uncertainty on Environmental Sustainability in MENA Countries: An Empirical Analysis Using the EKC Approach
Articles in Press, Accepted Manuscript, Available Online from 25 July 2026
https://doi.org/10.22034/envj.2026.527887.1511
Samaneh Abedi, Mandana Shiravand
Abstract This study empirically examines the impact of economic policy uncertainty (EPU) on environmental sustainability in the Middle East and North Africa (MENA) region, using the Environmental Kuznets Curve (EKC) hypothesis as a theoretical framework. Drawing upon panel data from 13 selected MENA countries over the period 1997 to 2023, the analysis applies advanced econometric techniques—Generalized Least Squares (GLS) and Panel-Corrected Standard Errors (PCSE)—to estimate the effects of key economic and energy-related variables on greenhouse gas (GHG) emissions, a proxy for environmental degradation.
The core objective of this research is to assess whether uncertainty in economic policy undermines the region’s efforts toward environmental sustainability, particularly by examining how EPU influences carbon emissions and interacts with variables such as gross domestic product per capita (GDP per capita), renewable energy consumption (REC), and foreign direct investment (FDI). The study employs the World Uncertainty Index (WUI) to represent EPU, which captures global perceptions of uncertainty in economic policymaking based on international economic reports and media coverage.
The empirical results demonstrate a statistically significant and positive relationship between EPU and GHG emissions. Specifically, a one-unit increase in the WUI index is associated with an average rise of 0.00072 to 0.00076 kilotons of GHG emissions. This finding suggests that elevated policy uncertainty creates an unfavorable environment for environmental investment and planning. It delays or disrupts the implementation of clean energy projects, diminishes the attractiveness of green technology investments, and hampers environmental innovation.
In contrast, renewable energy consumption has a statistically significant and negative impact on GHG emissions. An increase in the share of renewable energy consumption results in a reduction of emissions by 0.22 to 0.43 kilotons, underscoring the critical role that clean energy transitions play in reducing environmental harm. This result strongly supports policy initiatives aimed at promoting renewable energy infrastructure in MENA countries.
Furthermore, the study validates the EKC hypothesis by revealing a non-linear relationship between GDP per capita and environmental degradation. The results indicate that at lower levels of income, economic growth contributes to increased emissions. However, after surpassing a certain income threshold, further economic development leads to reductions in emissions. This pattern reflects the combined effects of industrial restructuring, public demand for environmental quality, improved regulatory mechanisms, and technological innovation.
The role of FDI in influencing environmental sustainability is mixed. While its coefficients are generally negative—suggesting a potential to reduce emissions through technology transfer and cleaner production processes—the statistical significance of this effect varies across models. This implies that the environmental impact of FDI depends on the nature of investments and the presence of environmental regulations that can guide FDI toward sustainable sectors.
A country-level analysis of WUI and GHG emission trends shows that nations such as Iran, Iraq, and Egypt face high levels of policy uncertainty alongside elevated emissions, due to political instability, institutional weaknesses, and economic reliance on fossil fuels. In contrast, relatively stable countries like Morocco and Kuwait exhibit lower levels of both uncertainty and emissions, reflecting stronger governance and more predictable policy environments.
The findings underscore the importance of reducing economic policy uncertainty to foster long-term environmental and economic sustainability in the MENA region. Policymakers are urged to adopt transparent, consistent, and long-term strategies that support clean energy transitions, attract green investment, and build institutional resilience. Without addressing EPU, efforts toward sustainable development and climate mitigation in MENA are likely to remain inadequate.
This study contributes to the growing literature on the economic determinants of environmental sustainability and offers novel insights into how uncertainty in policymaking can shape environmental outcomes, particularly in resource-dependent and institutionally fragile economies.
Assessing Stakeholders’ Perceptions of Livelihood Diversification in Wetland-Dependent Communities Case Study: Meyghan Wetland
Articles in Press, Accepted Manuscript, Available Online from 01 August 2026
https://doi.org/10.22034/envj.2026.579258.1625
حجت الله خدری غریب وند, Rasool Zamnai-Ahmadmahmoodi, Fatemeh Azimi, Seyedeh Samira Soleimanipour
Abstract Abstract
Introduction
Wetlands are among the richest ecosystems in the world, playing a vital role in climate regulation, biodiversity conservation, and sustaining the livelihoods of more than one billion people. Despite these values, over 50% of the world’s wetlands have been destroyed since 1900, leading to consequences such as reduced food security, increased poverty, and rural migration. In this context, livelihood diversification and the utilization of capacities such as ecotourism and sustainable agriculture—particularly in Meyghan Wetland—are considered key strategies for enhancing the economic and social resilience of local communities.
Materials and Methods
This research was conducted with a descriptive–analytical approach in the form of an applied study. The statistical population included three main stakeholder groups of Meyghan Wetland: local communities, tourists, and citizens of the metropolitan city of Arak. Data were collected through a structured questionnaire containing both closed and open-ended questions, distributed evenly among 300 participants. Ultimately, 180 questionnaires were validated, with 60 from each group. The validity of the instrument was confirmed by experts, and its reliability was verified with a Cronbach’s alpha above 0.7.
Results
Regarding the perspectives of local communities, the findings indicate that between 38% and 62% of respondents assessed the role of resources such as forage, tourism, water resources, bird hunting, fishing, aquatic plants, handicrafts, and other activities including horticulture and livestock farming as “very low” in supporting their livelihoods. These results suggest that the ecological resources of the wetland hold a limited position within the livelihood portfolio of local communities. Concerning the views of residents of the Arak metropolitan area, the dependence of local communities on wetland resources was also evaluated as very low. Between 28% and 52% of respondents rated the role of these resources as “very low,” 15% to 30% as “moderate,” and only 3% to 17% as “very high.” With respect to tourists’ perspectives, the results showed that 20% to 37% assessed the role of these resources as “very low,” 15% to 30% as “moderate,” and only 0% to 15% as “very high.
Discussion
The analysis of respondents’ demographic characteristics (gender, age, and education level) highlights the importance of women’s participation, the active role of middle-aged individuals, and the integration of scientific knowledge with indigenous knowledge in the sustainable management of the wetland. Accordingly, livelihood diversification strategies should be grounded in the development of alternative employment opportunities, as well as the education and empowerment of different social groups, in order to strengthen the resilience of communities surrounding the wetland. Overall, the findings derived from the three stakeholder groups indicate that the ecological resources of the Meighan Wetland play a limited role in the livelihoods of local communities. These results underscore the necessity of designing and implementing sustainable alternative strategies to enhance local livelihoods particularly in terms of reducing pressure on wetland resources, increasing the economic resilience of local households, and strengthening participation in natural resource management. These results underscore the necessity of designing and implementing sustainable alternative strategies to enhance local livelihoods particularly in terms of reducing pressure on wetland resources, increasing the economic resilience of local households, and strengthening participation in natural resource management.
Assessing Ecological-Economic Resilience of Iranian Agriculture and Livestock to Climate Change: A Transdisciplinary Analysis with Ecosystem Services and Integrated Governance Approach
Articles in Press, Accepted Manuscript, Available Online from 15 August 2026
https://doi.org/10.22034/envj.2026.587361.1648
arsalan biniaz, houman bagherpour najaf abad
Abstract Background and Objective: Climate change is a major challenge to global agriculture. Rising temperatures, changing rainfall, intensifying droughts, and extreme events affect the production function and threaten economic and ecological sustainability through reduced input productivity, increased output variability, and diminished income stability. In Iran, this issue is critical due to the arid and semi-arid climate, heavy dependence on water and soil, and traditional farming structure. Despite domestic studies on climate impacts on production and income, few have comprehensively measured ecological-economic resilience at the provincial level with emphasis on ecosystem services and integrated governance. The main objective is to measure the ecological-economic resilience of Iranian agriculture to climate change and explain the roles of ecosystem services and integrated governance in enhancing it. This study constructs a composite index, examines climate shock effects, analyzes the role of natural capital and institutional capacity in moderating vulnerability, and identifies spatial differences among provinces. The innovation is that, unlike conventional approaches, it examines resilience within an ecological-economic framework and incorporates ecosystem services as an explanatory and moderating factor.
Materials and Methods: This applied quantitative-analytical research used data from official sources, including statistical yearbooks of the Ministry of Agriculture Jihad, the Statistical Center of Iran, the Iran Meteorological Organization, the Forests, Range and Watershed Management Organization, the Central Bank, the Agricultural Insurance Fund, and remote sensing data for 31 provinces during 2011-2023. The dependent variable was the ecological-economic resilience index, constructed based on water productivity, production value per hectare, land productivity, yield stability, income stability, the inverse of the coefficient of variation of production, crop diversification, the share of low-water-demand crops, and technical efficiency. Weighting was done using a combined BWM-CRITIC approach. Independent variables included climate shock intensity, ecosystem services, and integrated governance. A two-way fixed effects panel model was first estimated. Spatial autocorrelation was then examined using global Moran's I and LISA, and a spatial Durbin model was estimated. Scenario analysis was conducted based on SSP1-2.6, SSP2-4.5, and SSP5-8.5, along with social cost-benefit analysis of adaptation options.
Results and Discussion: The mean resilience index was 0.542, indicating a moderate level, but the range of 0.183 to 0.891 shows significant provincial heterogeneity. Water productivity (weight = 0.160) was the most important component. Climate shocks had a significant negative effect (-0.342), while ecosystem services (0.418) and integrated governance (0.287) had significant positive effects. Positive interaction terms indicated that these factors mitigate the negative impact of climate shocks. Significant positive spatial autocorrelation was confirmed (Moran's I = 0.347). LISA cluster analysis identified 8 provinces in the high-high cluster and 11 provinces in the low-low cluster. The spatial Durbin model revealed negative direct and spillover effects of climate shocks and positive direct and spillover effects of ecosystem services and governance. The high-emission scenario (SSP5-8.5) projected a 29.3% decline in resilience. Cost-benefit analysis showed that combined adaptation strategies had the highest economic returns. Robustness tests confirmed the stability of results. It is concluded that resilience results from the interaction of productivity, production stability, natural capital, and institutional capacity. Adaptation policies should be region-specific, combined, and based on proactive governance. Recommendations include improving water productivity, protecting ecosystem services, strengthening institutional coordination, prioritizing low-resilience provinces, developing climate-index insurance, and shifting from crisis management to proactive resilience governance.
Impact of Environmental Quality on Economic Growth with an Emphasis on the Role of Mediating Variables
Volume 11, Issue 92, Spring 2026
https://doi.org/10.22034/envj.2025.509075.1477
Seyed Kamal Sadeghi, Suhd Qasim Ghantab Al-magsoosi
Abstract Introduction: Economic growth is one of the main goals of all countries in the world and plays a prominent role in increasing income and improving the welfare of society. For this reason, identifying the causes and factors of economic growth has always been an important concern of researchers and policymakers. The importance of this issue is more prominent in regions that have lower economic growth such as developing countries. One of the factors that can affect economic growth is environmental quality, and in particular, greenhouse gases emissions. Environmental quality can affect economic growth through several channels. The most important of these channels include health, FDI, and technological innovation. Accordingly, considering the importance of economic growth and the increasing growth of carbon dioxide emissions in developing countries on the one hand, and its probable direct and indirect impact through potential channels on economic growth on the other hand, this study aims to investigate the effect of carbon dioxide emissions on economic growth by emphasizing on three channels of health, foreign direct investment and technological innovation in Iran during the period 1981-2023 applying a time series data regression approach based on two-stage generalized method of moments.
Materials and Methods: In this study, first, the effect of carbon dioxide emissions on economic growth is examined. Then, in three separate GMM models, the effect of carbon dioxide emissions on three mediator variables of health status, foreign direct investment and technological innovation is examined. The general form of the four models used in this study is an improved form of Acheampong and Opoku (2023) model. The reason for using GMM is that this approach has high flexibility and requires few initial assumptions, which has made it popular. In addition, this estimator is used in models in which endogeneity resulting from estimating specific unobservable effects and the inclusion of lagged dependent variable as an explanatory variable is a fundamental problem. After estimating the four models in question, the Sobel test is used to examine the mediating role of the three variables
Results: According to the results, the impact of carbon dioxide emissions on economic growth is inverted U-shaped. This means that up to a certain level of pollution, a decrease in environmental quality leads to an increase in economic growth, and after reaching a threshold level, an increase in pollution is associated with a decrease in economic growth. Also, an increase in carbon dioxide emissions leads to an increase in mortality and thus reduces economic growth. In addition, carbon dioxide emission decreases foreign direct investment and thus has a negative impact on economic growth. Carbon dioxide emissions also reduces economic growth through a decrease in technological innovation. Therefore, according to the results of this study, carbon dioxide emission leads to a decrease in economic growth through health, foreign direct investment, and technological innovation.
Discussion: According to the results, the following policy recommendations are presented:
• Policymakers should be careful in combating environmental pollution so that their tools and strategies for reducing greenhouse gases emissions do not lead to distortion of production activities and reduced economic growth.
• Policymakers should consider the complexities associated with environmental degradation and its link to economic growth in designing environmental policies.
Designing a Paradigmatic Model for the Environmental Sustainability of E-Commerce and Identifying Influential Variables by Using the MICMAC Method
Volume 11, Issue 92, Spring 2026
https://doi.org/10.22034/envj.2025.517536.1493
Faezeh Hedayat Nazari, Nazanin Teimouri
Abstract Introduction:
In Iran, with the growth of e-commerce performance across various cities, the future outlook for e-commerce appears promising. However, a critical question requiring immediate attention is how environmental sustainability in the e-commerce sector would be achieved, given the escalating environmental challenges in Iran. This significant issue has not been deeply explored in existing e-commerce research, both in Iran and globally. Moreover, stakeholders and decision-makers in this field lack sufficient in-depth knowledge of the dimensions and influencing factors necessary to implement environmental sustainability in e-commerce. Therefore, this study aimed to design a paradigmatic model for the environmental sustainability of e-commerce and identify the key influencing variables.
Materials and Methods:
This applied research adopts an exploratory and descriptive approach in terms of data collection. The first phase involved a comprehensive literature review, focusing on credible scientific sources related to the research topic. The findings from this phase helped establish the theoretical foundations and analyze prior research, ultimately identifying and extracting influential variables. The second phase involved surveying experts through exploratory interviews to gather insights on the variables affecting environmental sustainability in Iran's e-commerce sector. These interviews aimed to refine and supplement the identified factors and develop an optimal paradigmatic model. The collected data were analyzed using “content analysis” and a three-stage coding process. This three-stage coding process, comprising open coding, axial coding, and selective coding, to systematically extract and interpret the findings. After identifying the variables through literature review and interview analysis, relevant indicators were extracted and reviewed by experts. To examine the relationships between variables, a two-dimensional matrix known as the cross-impact matrix was employed. In this matrix, variables listed in the rows influence those in the columns. Thus, the row sum indicates the degree of a variable's influence on others. The column sum reflects the degree of its dependence on other variables. For N identified variables, an N×N matrix was constructed, explicitly mapping the directional impacts between variables. At the end of this process the final set of indicators was used to examine variable relationships and interaction effects matrix by using MICMAC software.
Results:
The findings indicate that the paradigmatic model includes: Contextual factors including of economic and social elements. Intervening factors, including of organizational, legislative, and environmental policy aspects. Causal conditions, such as resource and environmental crises, as well as climate and energy challenges. Strategies, involving sustainable transportation and logistics, sustainable supply chain networks, digital transformation, smart systems, and stakeholder collaboration. Outcomes, manifest at both the corporate and macro levels of environmental sustainability in e-commerce.
Discussion:
The most critical variables influencing the implementation of environmental sustainability in e-commerce include: Raw material and natural resource scarcity, Conservation efforts, Environmental accountability, Eco-consciousness and future-oriented thinking, Top management commitment, Cost management, National and international environmental protection laws, Government incentives for waste reduction, Sustainable transportation and logistics policies, Optimal delivery routes, Supply chain software, and Social branding. To effectively implement this model, key variables such as: Corporate social responsibility strategies, Ethical and cultural imperatives, Organizational sustainability training, Biodiversity loss risks, Supplier selection, Geographic distribution of facilities, Storage and warehousing, Shared economy principles, and Collaborative innovation; must be prioritized by e-commerce managers and policymakers. Therefore, present study provides a foundational framework for enhancing environmental sustainability in Iran's e-commerce sector, offering actionable insights for stakeholders.
The Impact of Natural Resource Extraction on Environmental Quality in D-8 Countries
Volume 11, Issue 91, Spring 2026, Pages 40-53
https://doi.org/10.22034/envj.2025.507109.1475
Navid Kargar Dehbidi, Jalal Henareh
Abstract Introduction: The D-8 Countries was established to promote regional agreements, strengthen economic relations, and increase the collective influence of its member states in global markets. The D-8 group includes Iran, Turkey, Pakistan, Malaysia, Indonesia, Nigeria, Egypt, and Bangladesh, which exhibit diverse ecological and climatic conditions. One of the group’s strategic goals is to enhance food security and ensure energy supply through joint investments in agriculture and natural resources. Data on greenhouse gas emissions indicate that environmental quality in these countries has declined rapidly over the past two decades. In this context, the present study investigates the impact of natural resource extraction on environmental quality, focusing on greenhouse gas emissions in the D-8 Islamic countries. This research can contribute to a clear understanding of the current state of resources, support future studies, and promote accurate, evidence-based planning in the environmental field.
Materials and Methods: In this study, based on the stationarity properties of the variables, the panel cointegration approach was applied. Furthermore, according to the results of the Pedroni and Kao cointegration tests, the short-run relationship was estimated using the Error Correction Model (ECM), while the long-run relationship was estimated using the Fully Modified Ordinary Least Squares (FMOLS) method.
Results: The findings of this study indicate that an increase in resource rents derived from forestry, mining, and fossil fuel extraction contributes to higher greenhouse gas (GHG) emissions and a decline in environmental quality. Specifically, a one percent increase in forestry, mining, and fossil fuel rents is associated with a long-term rise in per capita GHG emissions of approximately 0.05%, 0.08%, and 0.01%, respectively. Furthermore, the results demonstrate that an increase in exports exacerbates environmental pollution. A one percent increase in exports is projected to raise per capita GHG emissions by about 0.007% in the long run. Conversely, a one percent increase in imports is expected to reduce per capita GHG emissions by approximately 0.01%.
Discussion: The empirical findings confirm a stable, long run relationship between natural resource extraction and greenhouse gas (GHG) emissions. Accordingly, it is recommended that deterrent measures such as imposing taxes and customs duties on raw timber exports and employing remote sensing tools for continuous forest cover monitoring be adopted to prevent further depletion of these natural assets. Additionally, mining activities should be supervised through environmental mechanisms and regulations, and a substantial portion of mining revenues should be allocated to establishing vegetative cover and enhancing environmental quality. Furthermore, one of the most effective strategies to mitigate the adverse environmental impact of fossil fuel consumption is the diversification of energy supply sources. The utilization of renewable energy sources, such as solar and wind power, which are independent of carbon combustion, can significantly reduce GHG emissions. Therefore, appropriate infrastructure should be developed to maximize the share of renewable energy. The results also indicate that trade expansion positively affects pollution levels through increased exports, while imports exert a negative effect. Thus, trade policies should be formulated in a manner that preserves biocapacity by preventing the export of goods that undermine domestic ecological resilience, thereby strengthening environmental sustainability. In conclusion, macroeconomic policy design must take into account the aforementioned environmental consequences, particularly the impacts of natural resource extraction and trade patterns based on the type of goods produced.
Investigating the Relationship between Renewable Energy Consumption and Environmental Degradation
Volume 10, Issue 90, Autumn 2025, Pages 15-30
https://doi.org/10.22034/envj.2025.485997.1427
Mahsa Shojaeifar, Somayeh Amirtaimoori, Mohammad Reza Zare Mehrjerdi
Abstract Introduction: In recent decades, human activities have significantly damaged the environment, and currently, the emission of greenhouse gases and global warming are among the most important environmental issues. The use of fossil energy has made a major contribution to the emission of greenhouse gases and as a result the destruction of the environment by humans. Due to the role of renewable energies in reducing the emission of pollutants and as a result reducing the destruction of the environment, more use of these energies has attracted the attention of countries. Therefore, in this study, the relationship between renewable energy consumption and environmental degradation (ecological footprint index) in 38 countries with lower average income during the period of 1997 to 2020 has been investigated.
Materials and Methods: For this purpose, the system of simultaneous equations and the three-stage least squares method (3SLS) were used. In order to estimate the system of simultaneous equations, first, the stationary of the variables was checked, and to avoid spurious regression, the co-integration of the equations was checked using the Kao test. Then, using the Hausman test, a choice was made between the two methods of estimating the panel data. After that, the simultaneity bias test was performed to check the existence of simultaneity between the endogenous variables and finally, in order to analyze the data, the system of equations was estimated using the 3SLS method. The necessary statistics and information were collected from the Global Footprint Network website and the World Bank database for the period of 1997-2020.
Results: The empirical results showed that there is a negative relationship between environmental degradation and renewable energy consumption, and with a one-unit increase in renewable energy consumption, the ecological footprint decreases by 0.0071. With a one-unit increase in the variables of foreign direct investment, urbanization, technological innovation, and economic growth, the amount of renewable energy consumption decreases by 0.78, 0.32, 0.06, and 33.9 units, respectively. The amount of renewable energy consumption increases by 0.34 units with a one-unit increase in the variable of natural resource rent. A one-unit increase in the variables of crop production, livestock production index, and financial development index will increase the ecological footprint by 0.0022, 0.0042, and 0.0107 units. With a one-unit increase in foreign direct investment, the ecological footprint decreases by 0.023 units.
Discussion: The results showed that increasing the use of renewable energy can improve the quality of the environment. The financial sector has allocated resources to enterprises that have led to an increase in industrial waste, pollution emissions, and consequently environmental degradation. The agricultural sector has caused pollution and environmental degradation through livestock farming, ammonia in fertilizers on agricultural fields, livestock wastewater wetlands, slaughtering meat animals, corn and soy protein production, sugar refining, wool processing, and other things. Foreign capital can reduce environmental degradation by facilitating the development of modern environmentally friendly technologies. Increasing the efficiency of natural resources motivates people to use them effectively and efficiently and increases the consumption of renewable energies. Therefore, directing foreign direct investments and technological innovations towards greater use of renewable energies, increasing the natural resource rent, directing national resources towards environmentally friendly activities and technologies, increasing the productivity of crop and livestock production, and using environmentally friendly technologies in the agricultural sector can help reduce environmental degradation.
Examining the Impact of Environmental, Social and Governance (ESG) Performance on Future Operating Cash Flows: The Moderating Role of Profitability
Volume 10, Issue 90, Autumn 2025, Pages 31-43
https://doi.org/10.22034/envj.2025.506861.1472
Mohammad Javad Zare Bahnamiri, Fatemeh Talkhabi, Reza Yaqobi Berijani
Abstract Introduction: Environmental, Social, and Corporate Governance (ESG) activities are vital for sustainable growth, and prior studies have shown that Environmental, Social, and Corporate Governance performance has both financial and non-financial consequences for firms. Future operating cash flows are also among the key constructs in firm valuation. Moreover, profitability is expected to influence the relationship between Environmental, Social, and Corporate Governance performance and future operating cash flows, as strong profitability indicates that a firm has sufficient financial margins to cover the costs of implementing Environmental, Social, and Corporate Governance practices without creating significant financial risk. Consequently, an increase in future operating cash flows for such firms is not unexpected. Therefore, the objective of this study is to examine the effect of environmental, social, and governance performance on future operating cash flows and, subsequently, to provide evidence on the moderating role of profitability in the relationship between Environmental, Social, and Corporate Governance performance and future operating cash flows.
Materials and Methods: The statistical population of this study consists of companies listed on the Tehran Stock Exchange. The sampling method is based on availability using a screening approach. From among the listed companies, those without limitations such as being financial institutions, holding companies, banks, insurance companies, or having incomplete information were selected. Additionally, companies were required to be active members of the Tehran Stock Exchange from the beginning of 2015 to the end of 2023. By referring to various databases of the Tehran Stock Exchange, the required data were collected from annual financial statements, accompanying notes, financial activity reports, and board of directors’ reports. This research is strategic/quantitative in nature, descriptive in purpose, empirical in approach, and applied/library-based in methodology. To test the research hypotheses, a mathematical model was estimated using multivariate regression. The data were structured as panel data, and the Generalized Method of Moments (GMM) estimator along with Stata software version 17 was used to test the research hypotheses.
Results: The results of the first hypothesis test indicate that companies’ environmental, social, and governance performance is positively associated with future operating cash flows. This implies that improvements in environmental, social, and governance activities can lead to an increase or intensification of future operating cash flows. Furthermore, the results of the second hypothesis test show that profitability has a positive effect on the relationship between Environmental, Social, and Corporate Governance performance and future operating cash flows. Thus, it can be stated that profitability strengthens the positive relationship between corporate Environmental, Social, and Corporate Governance performance and future operating cash flows.
Discussion: This study examined the relationship between environmental, social, and governance performance and future operating cash flows in companies listed on the Tehran Stock Exchange. In addition, this relationship was analyzed under conditions of corporate profitability. The findings support the resource-based theory and theoretical reasoning that suggest a positive relationship between corporate Environmental, Social, and Corporate Governance performance and earnings quality. By demonstrating that corporate environmental, social, and governance performance provides information about firms’ future financial prospects and earnings quality, this study enriches the existing literature in this field.
Investigating the Causal Factors Determining Environmental Quality Indicators in Iran Using the New Approach of Bootstrap Fourier Granger Causality in Quantile (BFGC-Q)
Volume 10, Issue 89, Summer 2025, Pages 1-22
https://doi.org/10.22034/envj.2025.467706.1390
Sahebe Mohamadian Mansour, Abolghasem Golkhandan
Abstract Introduction: According to the statistics published by the Global Footprint Network, Iran's ecological deficit, which was 0.55 per capita global hectare in 1961, has increased by 554% to 2.50 per capita global hectare in 2022; which shows that the existing supply of natural resources in Iran is not enough to maintain the current production and consumption patterns. Based on this, the analysis of the determining factors of environmental quality indicators in Iran can provide valuable suggestions in the field of designing appropriate environmental policies. In this regard, the main goal of this study is to examine the causal determinants of environmental indicators in Iran.
Materials and Methods: The present descriptive-analytical and applied study uses time series data from 1970-2022 to examine the causal determinants of environmental indicators in Iran using two traditional indicators of CO2 emission and ecological footprint (EF) and also the new index of load capacity factor (LCF) which simultaneously considers the supply and demand of nature. Based on this, the causal effect of economic growth, natural resources dependency, urbanization, and renewable energy consumption on environmental quality indicators has been investigated by applying the new approach of Bootstrap Fourier Granger Causality in Quantile (BFGC-Q) during the years 1970-2022. Unlike previous Grangerian causality tests, this approach considers the issue of non-linearity and structural breaks and can provide useful information about a causal-tail relationship.
Results: The results show that urbanization in all quantiles (10th-90th) leads to an increase in CO2 emissions and EF and a decrease in LCF. GDP per capita in the low and middle quantiles (10th-50th) shows a negative causal relationship with LCF and a positive causal relationship with EF in the initial 10th and upper 70th quantiles. Furthermore, GDP per capita in all quantiles (10th-90th) has increased CO2 emissions. Regarding the rent of natural resources, in general, the results of this research support the neutral hypothesis and the absence of a causal relationship. Renewable energy consumption also leads to an increase in LCF in all quantiles (10th-90th) and a decrease in EF in 10th-70th quantiles. While this variable did not have a significant causal relationship with CO2 emissions in any of the quantiles.
Discussion: The results show that depending on the investigated environmental index, the effects of economic growth, dependence on natural resources, urbanization, and renewable energy consumption on ecological quality are somewhat different. Based on the results, urbanization has led to the destruction of the country's environment. Therefore, policymakers and urban planners in the process of expanding urbanization must pay attention to the prevention of environmental destruction and prioritize the correct energy consumption. The positive causal effect of GDP per capita in all quantiles on CO2 emissions shows that growth and development paths in Iran are more carbon-intensive. Therefore, efforts should be made to achieve higher economic growth, which requires the use of more energy as one of the most important production factors, by creating and strengthening clean energy and also using technologies to be advanced, efficient, and environmentally friendly in the production process. Considering the positive effect of renewable energy consumption on the LCF index and its negative effect acton EF, it can be said that the increase in renewable energy consumption has reduced the ecological footprint and surpassed its biological capacity in Iran; Based on this, increasing the share of renewable energy can help improve the quality of the environment in the country.
Assessment and Valuation of Nutrient Retention Ecosystem Service in the International Mangrove Wetland of Khorkhoran Using the invest NDR Model and Avoided Cost Method
Volume 10, Issue 89, Summer 2025, Pages 75-92
https://doi.org/10.22034/envj.2025.517676.1492
Ardavan Zarandian, Roya Mousazadeh, Majid Ramezani Mehrian, Fatemeh Mohammadyari, Mohammad Sadegh Saba, Seyedeh Mahtab Shojaei Langari
Abstract Introduction: The international mangrove wetland of Khurkhoran on the southern coast of Iran, plays an important role in absorbing and stabilizing the retention of nutrients such as nitrogen and phosphorus, which reduces pollution of water resources and improves water quality. The increase in the use of chemical fertilizers in agriculture, the entry of urban and industrial wastewater, and changes in land use have put great pressure on this ecosystem and have increased the nutrient load in the waters entering the wetland. Therefore, the quantification and economic valuation of this ecosystem service is essential for the planning and sustainable management of wetlands. This study aims to: (1) Quantitatively assess the retention of nitrogen and phosphorus by the Khorkhoran International Wetland; (2) Map the spatial distribution of nutrient export and retention; and, (3) Estimate the economic value of this ecosystem service using both the avoided cost and benefit transfer approaches.
Materials and Methods: In this study, the NDR model from the InVEST software package was used to simulate the export and retention of nitrogen and phosphorus in the study area. The key input data included a land use map, a precipitation and surface runoff map, DEM, and nutrient loads from agricultural and urban activities. The input data were processed in the ArcGIS software environment and the model was run. Subsequently, the model outputs included maps of extracted nutrient export and retention and key areas of this service were identified. Then, using the avoided cost and the benefit transfer methods, the economic value of the nutrient retention service was calculated based on the replacement cost of treating these materials in wastewater treatment engineering systems.
Results: The modeling results showed that the Khorkhoran mangrove wetland annually retains 243.75 and 834.18 tons of phosphorus and nitrogen respectively, which prevents these substances from entering water resources and causing problems such as algal blooms. Also, areas covered by mangrove forests and coastal marshes played the greatest role in retention these elements, while agricultural and urban areas showed the highest nutrient export. The annual phosphorus and nitrogen export from the study area was estimated to be 21.48 and 90.52 tons respectively, indicating the negative effects of human uses on the nutrient load entering the wetland. The economic value of the nutrient retention service was calculated. Accordingly, the cost of removing each kilogram of nitrogen and phosphorus in wastewater treatment systems was estimated to be 2.7 and 14.3 US$ in 2023. Considering the amount of nutrient retention in the wetland, the total value of this service in the study area was estimated to be 2639503 million Iran’s rials (Equal to US$ 5738050).
Discution: The results of this study emphasize that the Khor Khoran mangrove wetland is an effective natural filter for reducing water resource pollution. Preservation and management of this wetland can be a suitable economic alternative to costly wastewater treatment methods. As a result, in environmental management policies, paying attention to ecosystem services such as nutrient retention can significantly contribute to improving water quality and reducing pollution. In addition, it is suggested that future research should use field data and more accurate modeling methods to better assess these services. To improve the accuracy of predictions and assessments of ecosystem function, it is also necessary to simulate various climate conditions and examine the results under different scenarios.
Investigating The Relationship Between Climatic Variables and Total Factor Productivity of Irrigated Wheat in Isfahan Province
Volume 10, Issue 88, Summer 2025, Pages 83-97
https://doi.org/10.22034/envj.2025.480154.1417
Niloofar Dadgostar Darani, Azam Rezaee, Ramtin Joolaie, Farshid Eshraghi
Abstract Introduction: Given the constraints of resources and population growth, alongside the need to maximize productivity while preserving water, soil, and the environment for future generations, the importance of focusing on agricultural sector productivity is increasing. This study aims to investigate the relationship between climatic variables and the growth of total factor productivity of rainfed wheat in Isfahan province.
Materials and Methods: Data on precipitation, minimum temperature, maximum temperature, mean temperature, precipitation intensity, annual interest rate, total fertilizer consumption, total pesticide consumption (including herbicides, insecticides, fungicides, etc.), total labor, production cost, and yield were collected from the Central Bank of Iran, the National Meteorological Organization, the Agricultural Jihad Organization, and the Agricultural Jihad Organization of Isfahan province. These data were categorized by district for the period 2002–2024. The total factor productivity (TFP) of rainfed wheat, selected based on the largest cultivated area and highest production levels over the past 10 agricultural years, was estimated using the Solow Residual Method, panel data analysis, and a fixed effects model. Furthermore, the correlation coefficient was calculated to examine the relationship between climatic variables—precipitation intensity, mean temperature, maximum temperature, minimum temperature, and cumulative precipitation—and the growth of overall productivity of rainfed wheat. This analysis was conducted according to the climatic zones of Isfahan province: (1) warm and rainfed desert climate, (2) semi-arid climate, (3) cold mountainous climate, and (4) semi-cold and semi-arid climate.
Results: The Cobb-Douglas production function was identified as the most suitable model for rainfed wheat production in Isfahan province, based on significant coefficients and a strong R-squared value. The highest and lowest variations in rainfed wheat productivity growth were observed in Faridan district (cold mountainous climate) with 0.009 units and Khansar district (cold mountainous climate) with -0.067 units, respectively. Correlation analysis showed that mean temperature and precipitation intensity have a significant negative relationship with total factor productivity growth, while minimum temperature has a significant positive relationship with the total factor productivity of rainfed wheat.
Discussion: The results of this study demonstrate a significant relationship between climatic factors and total factor productivity growth of rainfed wheat across different districts of Isfahan province. Although geographical and climatic factors are beyond the direct control of policymakers, understanding their impacts allows for better management of their adverse effects on agricultural productivity growth.
The Impact of Natural Resource Dependency and Economic Globalization on Environmental Sustainability in IRAN within the framework of the N-shaped Environmental Kuznets Curve
Volume 10, Issue 87, Spring 2025, Pages 60-77
https://doi.org/10.22034/envj.2025.444793.1346
Abolghasem Golkhandan
Abstract Introduction: Environmental quality and its determinants are among the most important issues in environmental economics. The dependence of Iran's economy on natural resource rent and the recognition that the country is on the path of development and commercial liberalization makes it crucial to examine the impact of natural resource rent, economic globalization, and economic growth on environmental quality in Iran. On the other hand, the classical Environmental Kuznets Curve (EKC (believes that the relationship between economic growth and environmental degradation follows an inverted U-shaped curve. In more recent studies, considering the criticisms of the classical EKC, the factors affecting environmental degradation have been examined using a cubic equation and within the framework of the N-shaped EKC. As such, the primary aim of this research is to investigate the impact of natural resource dependency and economic globalization on environmental degradation in Iran within the framework of the N-shaped EKC.
Materials and Methods: The current descriptive-analytical and applied study model is designed using time series data from 1990 to 2021 and includes the variables of GDP per capita (as an economic growth index), square and cube of GDP per capita, share of natural resource rent from GDP (as an indicator of natural resource dependency), the economic dimension of the KOF globalization index and two indicators of environmental degradation (CO2 emissions and ecological footprint). The data used were collected from the databases of World Development Indicators belonging to the World Bank, KOF Economic Institute, and Global Footprint Network. In this study using Johansen-Juselius's cointegration test, the long-term relationship between the variables is evaluated. Finally, by the Vector Error Correction Model (VECM), the long-term and short-term coefficients of the variables have been estimated. Data analysis was also done with the help of Eviews12.0 software.
Results: The estimation of the model using the VECM method shows that, in the long term, the impact of economic growth, its square, and cube on both environmental degradation indicators is significant and positive, negative and positive, respectively, confirming the hypothesis of an N-shaped EKC. According to other results, the long-term impact of natural resource dependency and economic globalization on both environmental degradation indicators is significant and positive and negative, respectively. With a one percent increase in the share of natural resources from GDP, CO2 emissions and ecological footprints increase by about 0.18 and 0.16 percent, respectively, and with a one percent increase in the KOF globalization index, CO2 emissions and ecological footprints decrease by about 0.49 and 0.54 percent, respectively. Also, the error correction coefficient is estimated to be around -0.22 to -0.25, and in the short term, only economic globalization had a significant effect on the environmental degradation indicators.
Discussion: Achieving higher economic growth rates in the near future could lead to environmental degradation by crossing the second turning point of the N-shaped EKC. Therefore, efforts should be made to attain higher economic growth, which requires the use of more energy as one of the most important factors of production, by creating and strengthening clean energies. Also, the government should adopt the necessary control measures and policies to preserve and prevent excessive exploitation of natural resources and allocate a portion of the revenues from the sale of natural resources to investment in appropriate and environmentally friendly technologies by creating green funds. Furthermore, by confirming the global environmental management hypothesis that suggests economic globalization reduces environmental demand, moving towards an open economy can help improve environmental quality in Iran.
Factors Affecting Pollution in Terms of Economic Complexity and the Interrelationship of Economic Risk and Investment
Volume 9, Issue 84, Summer 2024, Pages 82-94
https://doi.org/10.22034/envj.2024.447779.1354
Ashkan Rahimzadeh
Abstract Introduction: According to the statistics of the World Bank, the amount of carbon dioxide emissions in Iran has grown by 210.65% in the last thirty years. In such a situation, this unfavorable situation should be changed in line with environmental standards, which naturally requires the identification of important factors affecting pollution. The main purpose of this research is to investigate the factors that seem to affect pollution according to the background. As economic complexity improves, higher knowledge and technological progress can lead to less polluting activities. Reducing economic risk and consequently increasing investment, if it is followed by efficient use of inputs and the use of environmental technology, can reduce pollution by overcoming the effect of scale. Higher energy prices, energy-efficient technologies and low energy prices have imposed technologies with a higher share of energy input on companies, which has an impact on the environment. The impact of trade expansion on pollution depends on the results of scale, combination and technical effects. ICT can change the efficiency of energy consumption by moving the economy towards a knowledge-based structure, by substituting information for energy, and thus affect pollution. Urban density can reduce energy consumption by creating economies of scale for public urban infrastructure, while the absence of proper urban infrastructure has the opposite effect. FDI increases relative advantage in which production sector affects pollution. Also, the advanced technology that comes with FDI affects the environment.
Materials and Methods: Explanatory variables of the model are economic complexity, interrelationship between economic risk and investment, interrelationship between energy price and energy intensity, trade liberalization, internet users, capital per capita, foreign direct investment and urbanization rate and the dependent variable of carbon dioxide emissions. The information of the variables was obtained from the World Bank, the MIT University website, and the International Country Risk Guide (ICRG) database and the energy balance sheet. The investigated period was during 2000-2022 and the ARDL method and EViews 9 software were used in the estimation.
Results: With the increase of economic complexity variables, energy price-energy intensity interrelationship, internet users and foreign direct investment, the amount of carbon dioxide emissions decreases in both short-term and long-term periods. The variables of mutual effects of economic risk-investment and capital per capita on pollution did not have a significant effect in both time periods. Commercial liberalization and urbanization have created a significant negative impact on the quality of the environment in the short and long term.
Discussion: The improvement of economic complexity has led to the dominance of technical and structural effect over scale effect and has reduced pollution. The increase in investment in the country, along with the reduction of economic risk, has not yet reached a level that can reduce pollution through the channel of economic growth. With the increase in energy prices, incentives have been placed in the direction of increasing energy efficiency, as a result of which pollution is reduced. As a result of the increase in exports due to trade liberalization, the use of resources and energy has been inappropriate, and in this regard, environmental laws and standards have also been ignored. The expansion of urbanization has increased the pollution with the expansion of economic activities, and in this regard, it has not been able to reduce the intensity of energy and pollution for public urban infrastructures through the creation of economies of scale. Foreign direct investment reduces pollution with the possibility of improving energy efficiency through technology spillover from foreign companies to domestic companies.
Investigating Factors Affecting Per Capita Health Expenditure in Five Major Cities of IRAN
Volume 9, Issue 83, Spring 2024, Pages 20-30
https://doi.org/10.22034/envj.2024.445209.1347
Soheila Biria, Ali Fakour
Abstract Introduction: One of the main concerns of governments in recent years has been the increase in per capita health expenditures, which is affected by several factors. The increase in gross domestic product (GDP), air pollution index and carbon dioxide (CO2) emissions have had direct and indirect effects on health expenditure per capita. An increase in GDP can improve life, but an increase in air pollution and CO2 emissions caused by human production activities usually causes health problems such as respiratory diseases, cardiovascular diseases, and climate changes. Health problems can increase the per capita health expenditure of people. In addition, these costs have negative effects on the economic productivity of society. Therefore, in this research, the relationship between air pollution and gross domestic product with health expenditures in the big cities of Iran including Tehran, Shiraz, Mashhad, Tabriz, Isfahan and Ahvaz is investigated. Considering that household income and air pollution are among the factors affecting household health expenses, therefore, investigating the relationship between these variables can be effective in finding solutions to improve the health level of the society and solve economic problems caused by the increase in health expenses.
Materials and Methods: In this study, the panel data model was used to investigate the factors affecting the per capita health expenditure in 5 major cities of the country. The investigated time period is between 2011-2022. To avoid fitting a false regression, the reliability of the variables is checked. To do this, Levin and Lane test is used. To test the co-accumulation of variables in the long term, Pedroni cointegration test was used, and to determine whether the model is a panel, Limer's F-test was used. Then, to determine whether the model is a model with fixed effects or a model with random effects, the Hausman test is performed. GMM method is used to estimate the model.
Results: The results of the model indicate that the increase in gross domestic product (GDP), air pollution index and carbon dioxide (CO2) emissions had a positive and significant effect on the increase in per capita health expenditures. In this way, air pollution caused by the economic growth of cities causes an increase in disease and an increase in the cost of health care. As a result, the continuation of air pollution and provision of health expenses by the government causes a larger part of the government's budget to be allocated to the provision of health expenses.
Discussion: One of the most important goals of economic development is to achieve higher economic growth. It is expected that the health level of the society will improve as the GDP level increases. But the studies confirm that with the increase in the gross domestic product of each of Iran's big cities, the amount of air pollution has also increased, which has endangered people's health and caused an increase in health costs and an increase in the number of deaths. Therefore, in order to control the per capita health care costs in big cities, it is suggested to the authorities to consider using new and green technology, investing in public transportation and improving energy efficiency as well as preserving the environment in their plans. Also, imposing a tax on CO2 emissions and encouraging the use of clean and green energy can be an economic stimulus to change unsustainable environmental behaviors.
Investigating Factors Affecting Energy Consumption and Pollution Emission: A Case Study of Iran
Volume 9, Issue 83, Spring 2024, Pages 31-44
https://doi.org/10.22034/envj.2024.409623.1303
Samaneh Bagheri
Abstract Introduction: Iran is one of the ten countries with the most pollution, so 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 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 the 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: This research examines 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. 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.
Results: According to the results of this research, the Kuznets curve was confirmed by the dynamic time series method and it means that economic growth leads to pollution in the beginning, but then it causes pollution to decrease. Energy consumption has had a positive and significant effect on carbon dioxide emissions. According to the research results, GDP, energy consumption, foreign direct investment has a positive and significant effect on carbon dioxide emissions. Trade liberalization affects energy consumption from its effect on the environment. The environment can be affected by trade liberalization through the three channels of scale effect, combination effect and technique effect. The scale effect is a change in economic growth, the combination effect is a change in the structure of the economy, and the technique effect is a change in the method and technology used in production. According to the results, 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.
Discussion: Environmental issues are one of the most important concerns of countries and creating a clean environment is one of the important goals of countries. According to the research results, using the Markov switching MS-ARMA (3,1,0) method, there is a positive and significant relationship between trade, GDP, and energy consumption with a break in energy consumption. Due to the effect of Iran's composition in energy-intensive industries, it has gained a relative advantage and trade has a positive and significant effect on energy consumption.
Is Financial Development Green in Iran? New Evidence from Iran Provinces
Volume 8, Issue 82, Winter 2024, Pages 17-34
https://doi.org/10.22034/envj.2024.416386.1314
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, 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 province
FDit: Composite index of financial development
GDPit: Real per capita gross domestic product of the provinces
EIit: Energy intensity
URBit: Urbanization rate
Also, 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.
Investigating a Non-Cyclical Diagram Between Energy Consumption, Carbon Dioxide Emissions and Economic Growth: a Case Study IRAN
Volume 8, Issue 81, Autumn 2023, Pages 19-29
https://doi.org/10.22034/envj.2023.338377.1199
Samaneh Bagheri
Abstract Introduction: Fossil fuel consumption has warmed the earth by releasing greenhouse gases. Abnormal climate changes, rising sea levels, melting glaciers and other climate phenomena have attracted global attention. Greenhouse gas emissions are considered as the main cause of climate change and global warming. The largest percentage of greenhouse gases is carbon dioxide gas. The spread of pollution is one of the most important problems of countries It is one of the problems of the present century. Iran is among the ten countries with the highest carbon dioxide emissions in the world, and measures have been taken to reduce carbon dioxide emissions in this country, which have not led to a reduction in carbon dioxide emissions in this country.
Materials and Methods: The purpose of this research is to investigate energy consumption, carbon dioxide emissions and economic growth using the directional non-cyclical graph approach for the period of 1990-2018 for the country of Iran. The data was obtained annually from the World Bank. Pearson's correlation test and Granger's causality test were investigated for variables of economic growth, capital, open trade, carbon dioxide emissions and energy consumption. For the first time, this research examines the causal relationship between energy consumption, carbon dioxide emissions and economic growth with the approach of a directed non-cyclic diagram.
Results: According to the results of this research, there is a significant correlation in the variables of carbon dioxide emission, open trade, energy consumption, capital formation and GDP. The highest correlation coefficient belongs to GDP and carbon dioxide emissions and the lowest correlation coefficient is related to gross domestic production and open trade. According to the results of the Granger causality test, causality from GDP to carbon dioxide emissions, causality from carbon dioxide emissions to energy consumption, causality from GDP to energy consumption, Causality from capital to energy consumption, causality from capital to GDP, The cause of carbon dioxide emissions to open trade. Causality from energy consumption to open trade, causality from capital to open trade and so on There is causality from GDP to open trade. Iran has a relative advantage in energy consumption due to its huge resources of oil and gas, which has caused the emission of pollutants by the gross domestic product.
Discussion: According to the results in Iran, there is causality from gross domestic product to energy consumption and carbon dioxide emissions, which shows that Iran does not need to reduce its economic growth in order to reduce carbon dioxide emissions. It indicates that energy consumption and carbon dioxide emissions in Iran will not lead to economic growth. Iran can follow a conservative energy policy and a policy to reduce carbon emissions in the long term without creating obstacles and reducing economic growth. Economic growth has led to the emission of pollution and it is possible to pursue economic growth without the emission of pollution by using sustainable development policies. The causality is from economic growth to energy consumption, trade and capital. According to the directed acyclic diagram (DAG), the Granger causality test was investigated in the variables of economic growth, open trade, capital, carbon dioxide emissions and energy consumption. According to the results of this research, Granger causality has started from economic growth to other variables.