Dynamic Relationship between Output and Pollution in a Growth Model: Testing Environmental Kuznets Curve for Iran
This paper uses the growth model of Stokey (1998) extended by Deng and Huang (2009) to examine the dynamic relationship between output and environmental pollution in Iran. After solving the model and deriving the necessary conditions for sustainable growth path, the model is used to examine the pres...
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Format: | Article |
Language: | fas |
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Allameh Tabataba'i University Press
2013-07-01
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Series: | Pizhūhishnāmah-i Iqtiṣād-i Inirzhī-i Īrān |
Subjects: | |
Online Access: | http://jiee.atu.ac.ir/article_757_79f7492bc260943471c30cb5a67906bd.pdf |
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author | karim eslameloian javad harati ali hosein ostadzad |
author_facet | karim eslameloian javad harati ali hosein ostadzad |
author_sort | karim eslameloian |
collection | DOAJ |
description | This paper uses the growth model of Stokey (1998) extended by Deng and Huang (2009) to examine the dynamic relationship between output and environmental pollution in Iran. After solving the model and deriving the necessary conditions for sustainable growth path, the model is used to examine the presence of Environmental Kuznets Curve (EKC) for Iran. Using MATLAB software, the model is calibrated for the Iranian economy for the period 1959-2008. This allows us to find optimal paths for key variables. The result shows that that the Iranian economy is not on its optimal sustainable growth path. Moreover, simulation results indicate that there is a positive relationship between income per capita and CO2 per capita over time. Hence, we might claim that the Iranian economy is probably on its early stage of growth. In other words, Iran might still be on the negative part of EKC. In addition, our simulation result shows that there will be a threshold level for per capita income in which the quality of environment starts improving after this point. Hence, one might conclude that the EKC might be true for Iran. |
first_indexed | 2024-04-11T03:07:15Z |
format | Article |
id | doaj.art-63f81b680a154fdf826fc56aff64335e |
institution | Directory Open Access Journal |
issn | 2423-5954 |
language | fas |
last_indexed | 2024-04-11T03:07:15Z |
publishDate | 2013-07-01 |
publisher | Allameh Tabataba'i University Press |
record_format | Article |
series | Pizhūhishnāmah-i Iqtiṣād-i Inirzhī-i Īrān |
spelling | doaj.art-63f81b680a154fdf826fc56aff64335e2023-01-02T12:49:30ZfasAllameh Tabataba'i University PressPizhūhishnāmah-i Iqtiṣād-i Inirzhī-i Īrān2423-59542013-07-0127171197Dynamic Relationship between Output and Pollution in a Growth Model: Testing Environmental Kuznets Curve for Irankarim eslameloianjavad haratiali hosein ostadzadThis paper uses the growth model of Stokey (1998) extended by Deng and Huang (2009) to examine the dynamic relationship between output and environmental pollution in Iran. After solving the model and deriving the necessary conditions for sustainable growth path, the model is used to examine the presence of Environmental Kuznets Curve (EKC) for Iran. Using MATLAB software, the model is calibrated for the Iranian economy for the period 1959-2008. This allows us to find optimal paths for key variables. The result shows that that the Iranian economy is not on its optimal sustainable growth path. Moreover, simulation results indicate that there is a positive relationship between income per capita and CO2 per capita over time. Hence, we might claim that the Iranian economy is probably on its early stage of growth. In other words, Iran might still be on the negative part of EKC. In addition, our simulation result shows that there will be a threshold level for per capita income in which the quality of environment starts improving after this point. Hence, one might conclude that the EKC might be true for Iran.http://jiee.atu.ac.ir/article_757_79f7492bc260943471c30cb5a67906bd.pdfGrowth Model; pollution externality; Human Capital; Environmental Kuznets Curve; Iran |
spellingShingle | karim eslameloian javad harati ali hosein ostadzad Dynamic Relationship between Output and Pollution in a Growth Model: Testing Environmental Kuznets Curve for Iran Pizhūhishnāmah-i Iqtiṣād-i Inirzhī-i Īrān Growth Model; pollution externality; Human Capital; Environmental Kuznets Curve; Iran |
title | Dynamic Relationship between Output and Pollution in a Growth Model: Testing Environmental Kuznets Curve for Iran |
title_full | Dynamic Relationship between Output and Pollution in a Growth Model: Testing Environmental Kuznets Curve for Iran |
title_fullStr | Dynamic Relationship between Output and Pollution in a Growth Model: Testing Environmental Kuznets Curve for Iran |
title_full_unstemmed | Dynamic Relationship between Output and Pollution in a Growth Model: Testing Environmental Kuznets Curve for Iran |
title_short | Dynamic Relationship between Output and Pollution in a Growth Model: Testing Environmental Kuznets Curve for Iran |
title_sort | dynamic relationship between output and pollution in a growth model testing environmental kuznets curve for iran |
topic | Growth Model; pollution externality; Human Capital; Environmental Kuznets Curve; Iran |
url | http://jiee.atu.ac.ir/article_757_79f7492bc260943471c30cb5a67906bd.pdf |
work_keys_str_mv | AT karimeslameloian dynamicrelationshipbetweenoutputandpollutioninagrowthmodeltestingenvironmentalkuznetscurveforiran AT javadharati dynamicrelationshipbetweenoutputandpollutioninagrowthmodeltestingenvironmentalkuznetscurveforiran AT alihoseinostadzad dynamicrelationshipbetweenoutputandpollutioninagrowthmodeltestingenvironmentalkuznetscurveforiran |