The impact of economic growth, energy consumption and financial development on the environment pollution in Iran during 1986 -2016

Mousavi, Seyed Kazem; Salmanpour, Ali; Shokouhifard, Siamak

The impact of economic growth, energy consumption and financial development on the environment pollution in Iran during 1986 -2016

Document Type : Original Article

Authors

Seyed Kazem Mousavi ¹

Ali Salmanpour ²

siamak shokouhifard ³

¹ Ph.D. student of law, Advisor to the Minister of Justice

² Department of Economics, Marand Branch, Islamic Azad University, Marand, Iran

³ PhD Student, Department of Economics, Tabriz Branch, Islamic Azad University, Tabriz, Iran

Abstract

Environmental pollution and factors affecting it are important in any economy. The main goal of this study is the impact of economic growth, energy consumption, financial development and economic openness on environmental pollution in the Iranian economy during 1986 to 2016. Then the environmental Kuznets hypothesis is of particular importance to consider. The model estimate of environmental pollution is the new form of econometric method like dynamic model of Auto-regressive Distributed Lag (ARDL) and Johanson-Joselius. Results show positive relationship between per capita income and environmental pollution variables. The relationship between squared per capita income and environmental pollution are negative. So the environmental Kuznets hypothesis was true in Iran, and Iran is on the upward environmental Kuznets curve (EKC). Between energy consumption and pollution there is also a positive relationship. Though there was no clear relationship between the financial development and economic openness variables with the environmental pollution.

Keywords

Environmental pollution

Economic Growth

environmental Kuznets hypothesis

energy consumption

financial developments index