Industrial Growth and Sustainable Development in Iran

Hojat Parsa (), Hadi Keshavarz () and Vahid Mohamad Taghvaee
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Hojat Parsa: Department of Economics, Persian Gulf University, Bushehr, Iran.
Hadi Keshavarz: Department of Economics, Persian Gulf University, Bushehr, Iran.

Iranian Economic Review (IER), 2019, vol. 23, issue 2, 319-339

Abstract: This study aims to measure how much the industrial sector suppresses the development process to be sustainable in Iran. We employ a quadratic-log form of regression model to test the Industrial Environmental Kuznets Hypothesis. In addition, we use a Vector AutoRegressive model to estimate the nexus among the industrial growth, income inequality, environmental pollution, and energy consumption in Iran during 1971 and 2014. The results confirm the Industrial Environmental Kuznets Hypothesis. Moreover, they show that all the three variables present the same response to the shock in the industrial growth since all the responses are increasing. It provides preponderance of evidence for the incompatibility of industrial growth with social, environmental, and resource development in Iran. This sector should be modified, improved, and reconstructed to pave the way for harmonization among the quadruple layers of sustainable development including industrial growth, environmental quality, social satisfaction, and optimal usage of resources. The policy-makers are advised to consider the sustainability properties in their development strategies as the development process evolves comprehensively.

Keywords: Industrial EKH; Sustainable Development; Environmental Pollution; Income Inequality; Energy Consumption. (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:eut:journl:v:23:y:2019:i:2:p:319

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