Impact of Innovation on Pollution Emission of Iranian Provinces in the Framework of Environmental Kuznets Curve (Spatial Econometric Approach)

Maryam Darbidi (), Sohrab Delangizan (), Shahram Fatahi () and Mohammad Sharif Karimi ()
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Maryam Darbidi: Ph.D Candidate in Economics, Razi University
Sohrab Delangizan: Associate Professor of Economics, Razi University
Shahram Fatahi: Associate Professor of Economics, Razi University
Mohammad Sharif Karimi: Assistant Professor of Economics, Razi University

Quarterly Journal of Applied Theories of Economics, 2020, vol. 7, issue 3, 71-98

Abstract: Identification the affecting drivers on improving the quality of the environment is one of the most effective steps towards achieving environment friendly economic growth and development, thus moving to the third stage of the environmental Kuznets curve. In the present study, the impact of innovation as one of the most important affecting variables on emission of pollution in the Iranian provinces in the framework of Kuznets curve over the period of 2007- 2016 has been estimated with the spatial econometric approach. Two indicators of R&D costs and human capital are used as an alternative to innovation. The results indicate that R&D and human capital have a significant negative impact on air pollution emissions in the Iranian provinces. Therefore, policymakers should reduce pollution emission by planning to increase local investment in R&D activities and improving the quality of human capital. Also, the increase in R&D of adjacent provinces through spatial spillover effects reduces contaminant emission. The findings also suggest that innovation causes that the return point of Kuznets curve occurs at a lower GDP per capita level.

Keywords: Environmental Kuznets Curve; Innovation; Research and development costs; Spatial Durbin Model (search for similar items in EconPapers)
JEL-codes: O18 O31 Q16 Q53 (search for similar items in EconPapers)
Date: 2020
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