International trade and air pollution damages in Iran

Document Type : Research Paper

Authors

1 Asistant Professor of Department Agricultural Economics, Shahr-e-Qods Branch, Islamic Azad University, Tehran, Iran.

2 Assistant Professor, Faculty of Economics, Allameh Tabataba’i University, Tehran, Iran

Abstract

In recent dacades,the unbalanced pattern of foreign trade and its impact on the unfair emission of pollutants in different countries, has been considered by policymakers.in addition to the economic effects of trade, its environmental effects should also be considered in calculating the real trade balance or "green trade balance". in the present study, using the input-output technique. monetary losses resulting and the added value created in the trade process, are estimated in nineteen sectors. The net environmental damage is equal to 4.8% of the net value added and 1.7% of Iran's trade deficit in 2019. The results show that Iran, despite having a trade deficit, is a net importer of pollution. Estimates in the second stage confirm the higher export losses ($ 60.2) compared to the avoided import losses ($ 38.7) for each monetary unit of trade. In fact,Iran is turned to “port of pollution” because of it’s structure. In terms of trade relations with other countries, most of the pollution was imported from Iraq and Afghanistan, while the most polluted exports were to Germany, Switzerland and France, respectively. In trade with China, there are also reciprocal effects (lower income trade and greater environmental damage). Given the current difficult economic and political conditions, the best strategy to simultaneously achieve economic and environmental goals is to develop import alternatives in the groups of pharmaceuticals and health, agriculture, recreational services, arts and tourism, wood, paper and leather textile products. Because they have the lowest proportion of environmental damage to value added among economic groups with a negative trade balance. Also, the minimum amount of environmental damage for each monetary unit of trade is observed in the mentioned groups. The comparison of the study findings with the results of other researches confirms the high potential of the pharmaceutical and health materials group in achieving both economic and economic goals during import substitution policy.

Keywords

References

Akhbari,M.(2002) Calculation of  pollution consumption  of  households  using  input-
      Output analysis in 1999. Proceedings of the Second Conference on the Application
      of input-Output Techniques in Economic and Social Planning, 21-28th March, 2002
      In Farsi
Bagoula.C and Guillotreau.P.(2020).Maritime Transport in the French Economy and it’s
      Impact  on  Air  Pollution: An Input-Output Analysis. Marine Policy,116(2020):1-9
      Article103818 
Banouei(2012) Evaluation of different methods for involvement of imports and it’s separation methods with emphasis on 1380 symmetric  input-output tables,Journal of Economic Policy Research,4(8).31-73. In Farsi
 Customs Site of the Islamic Republic of Iran,2018< https://www.irica.ir>   
Davis,S. J.and  Caldeira, K.(2010). Consumption-Based  Accounting  of  CO2  Emission. 
      emissions.Sustainability Science,107(12):5685-5692
Energy balance sheet .(2016). Ministry of  Power. Deputy  Minister of  Electricity  and
      Energy. Electricity and Energy Macro Planning Office
Fang.D  and Chen.B. February (2019). Inequality of  air pollution and  carbon emission
      embodied in inter-regional transport. Energy Procedia,(158): 3833-3839
 Frickmann Young, E. C. (2000): International trade and industrial emissions in Brazil:
      an input-output approach,XIII International Conference on Input-Output Techniques
      21-25 Aug. 2000,  Macerata, Italy
 Heidari,A.,Hojat,P,.and Ranjbari,F.(2020). Measurement and Analysis of Green Energy
        Economy  Indicators  in  Iran. Quarterly  Journal  of  Energy  Economics  Studies, 
        (64). 217-252. In Farsi
International Energy Agency (IEA).(2019) <www.iea.org>
Input-Output Table.(2010). Central bank of Islamic Republic of Iran.
Kjaer, L L. Høst-Madsen, N.K.Schmidt, J.H  and McAloone.T.C.(2015). Application of
       Environmental  Input-Output  Analysis for  Corporate and  Product  Environmental  
       Footprints—Learnings from Three Cases. Sustainability.7(9):11438-11461
Leontief,W (1970): Environmental  Repercussions and  Economic Structure: An  Input-
      Output Approach. The Review of Economics and Statistics,52(3):262-271
McGregor,P.G., J. K. Swales & K. Turner (2008): The CO2  “Trade Balance”  between 
         Scotland and the rest of the UK: Performing a Multi-Region Environmental Input
         -Output Analysis with  Limited  Data. Ecological Economics,66(4):662-673  
Miller R.,  and  Blair  P. 2009.  Input–Output  Analysis  (Foundations  and  Extensions).
        Second Edition. Cambridge University Press. New York
Nasrollahi,Z.,Vasfi Asfestani,SH., and Nourizadeh,S. (2014). Environmental Assessing
      of  Economic Activities Using Input-Output in Yazd Province. . Economic Modeling
     Quarterly, Eighth Year, No.26(2):75-89.(In Farsi)
Report  of  Foreign Trade  Performance, Iran  Trade  Development  Organization. (2018).
      < www.tpo.ir>
Sharei,A.,Faridzad,A.,and Banoei,A.(2017). Calculation the elasticity of  carbon dioxide
    Emission  in  energy-intensive  industries in  Iran."  approach of identifying  important
    Input-output coefficients.Economic Modeling Quarterly. 12(1):107-132.(In Farsi) 
Wiebe,K.S.Bruckner,M.Giljum,S  and  Lutz,C. (2012). Calculating  energy-related CO2
     emmission  embodied  in  international  trade  by Use of  a  global input-output  model.
      Economic Systems Research.24(2):113-139
Xu.X.,  Dietzenbacher.E  and Los.B. (2020) .International  Trade and Air Pollution
        Damages in  the United States. Ecological Economics. 171(2020):1-10
Zhai,M.Huang,G.Liu,L and Zhang.X.(2019). Ecological  network analysis of  an  energy
      metabolism system based on input-output tables:Model development and case study
     for Guandong. Journal of cleaner production.227:434-446
Agricultural Economics
Volume 14, Issue 3 - Serial Number 3
December 2020
Pages 27-57

Files

Share

How to cite

Statistics