Investigating the relationship between real GDP, energy consumption, financial development, degree of openness of economy and urbanization with environmental degradation in Iran

Mehdizadeh Rayeni, Mohammadjavad; Ziaee, Saman; Ahmadpour, Mahmoud

Investigating the relationship between real GDP, energy consumption, financial development, degree of openness of economy and urbanization with environmental degradation in Iran

Document Type : Original Article

Authors

Mohammadjavad Mehdizadeh rayeni

saman ziaee

mahmoud ahmadpour

University of Zabol- Zabol- Iran

Abstract

Greenhouse gas emissions are a major contributor to climate change. It is important to examine the economic aspects of greenhouse gas emissions and its environmental impacts, especially in the current context of increasing volumes of greenhouse gases..The purpose of this study was to investigate the relationship between CO2 emissions, real GDP, energy consumption, financial development, economic openness and urbanization in Iran using seasonal data during the period 1991-2019. To investigate the long-run and short-run relationship between the research variables, ARDL and ECM methods were used. The results showed that all coefficients are significant at 95% confidence level, and the variables of energy consumption, degree of openness of economy, urbanization rate have a positive relationship with CO2 emission in the long run. And the variables of real GDP and financial development have a negative relationship with CO2 emissions in the long run. Based on the results of the present study, it is suggested to consider alternative energy policies such as developing energy conservation strategies, reducing energy intensity, increasing energy efficiency and increasing the use of clean energy sources.

Keywords

Kuznets Environmental Curve (EKC)

ARDL Model

Iran