Paper
The Validity of Environmental Kuznets Curve in the Case of Iran
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Authors:
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Mohsen Mohammadi Khyareh
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Abstract
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This study investigates the validity of environmental Kuznets curve (EKC) in Iran during 1955-2010 by using various models such as linear, quadratic and cubic to investigate the robust model for EKC hypothesis. The variables of GDP per capita and CO2 emissions were used as indicators of economic growth and environmental degradation, respectively. Moreover, a time trend T, was used as a proxy for technology change and environmental awareness. Results showed that among the various models, the cubic equation is a good description of the EKC hypothesis in Iran. All the GDP and the T2 factors seem to play a significant role in explaining the CO2 fluctuations. However, the T factor seems not to influence the CO2 emissions. In addition, Results showed that an inflection point could be found at a level of 5,344 in GDP in 2000 US dollars. This level of GDP was reached twice, once in 1972, after which there was a fall in GDP levels, and again in 2000. There was no maximum for the cubic equation, however. The estimation of quadratic maximum is around 11,044. This means that the two equations largely differ and, thus, the EKC does not hold in the case of Iran.
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Keywords
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Environmental Kuznets Curve; CO2 Emission; Economic Growth; Iran
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StartPage
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129
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EndPage
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131
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Doi
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