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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Main Authors: karim eslameloian, javad harati, ali hosein ostadzad
Format: Article
Language:fas
Published: Allameh Tabataba'i University Press 2013-07-01
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.
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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