The group examined the relationship between air pollution, GDP, energy intensity and openness in Iran (Applications of Environmental Kuznets hypothesis)

Document Type : Research Paper

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Abstract

Environmental degradation is one of the most controversial issues in the economic environment has become. With the increase in greenhouse gases such as carbon dioxide, the risk of global warming, rising sea levels, as well as major changes in natural ecosystems is encountered. In the present study the long-term and short-term variations in carbon dioxide intensity of energy, economic growth and openness, in terms of the environmental Kuznets hypothesis using a distributed lag model autoregresive (ARDL) during the years 1965-2011 for Iran has been investigated. The results showed that both long-term and short-term relationship with third (N-shapes) Kuznets hypothesis is confirmed. In addition, the openness variable is not significant in the long run but in the short-term direct effect on carbon dioxide emissions. Also, long-term energy intensity variable is positive and significant effect on carbon dioxide emissions and the coefficient of this variable (0.86) obtained which indicates that for every one percent increase in energy intensity is less than one percent of the size 0.86% resulted in an increase in carbon dioxide emissions. This must be done in order to improve energy efficiency and reduce carbon dioxide emissions.

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