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

Vahid Mohamad Taghvaee and Hojat Parsa

MPRA Paper from University Library of Munich, Germany

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

Keywords: Environment.; Manufacturing.; Services. (search for similar items in EconPapers)
JEL-codes: Q5 (search for similar items in EconPapers)
Date: 2015
New Economics Papers: this item is included in nep-agr, nep-cwa, nep-ene, nep-env and nep-gro
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:67885

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