Trade Openness and CO2 Emissions in Iran (original) (raw)
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Trade Openness and CO2 Emissions in Iran, 1971-2008
International Journal of Business and Development Studies, 2011
The increase of greenhouse gases (GHG) in which CO2 emissions constitute the principal component, is of major environmental problems of all societies. Economic growth impels intensive use of resources and as a result, more residues and wastes thrown in the nature that could lead to environmental degradation. This article tries to trace the eventual relationship between trade openness and environmental degradation in Iran. For this purpose, a multivarate model is employed in which economic growth and trade openness are related to CO2 emissions for the period of 1971-2006. By carring out the Granger causality test, there appeared a unidirectional relation from trade openness to CO2 emissions. To analyze the variables’ relationships, the approach of GMM is applied. Results indicate that economic growth has a significant negative effect on carbon dioxcide emissions. But, the impact of trade openness on carbon dioxcide emissions is significantly positive.
The impact of trade openness on CO2 emissions in Iran, 1971-2005
2010
The increase of greenhouse gases (GHG) emissions is of major environmental problems. Economic growth necessitates more use of resources and more residues and wastes thrown in the nature, environmental degradation. Economic growth, trade openness, and environment degradation have had volatile and non-monotonic relationships. This paper investigates the relationships between trade openness, economic growth, and the CO2 emissions in Iran during the period of 1971-2005. We choose a model in which CO2 emissions are related to the economic growth, trade openness, capital stock, and the energy consumption of the country. For the purpose of analysis, and quantifying the relationships of the variables, generalized method of moments (GMM) approach is applied. The preliminary results indicate that trade openness has significant positive impact on the co2 emissions. And the emission-trade elasticity is lower than unity. On other hand, the elasticity of emission-growth is higher than unity with ...
iranian economic review, 2012
The aim of this paper has been to evaluate the effect of trade openness on the Iran’s environmental quality arising from its trade relations with the selected countries in East Asia, Middle East and OECD over the period 1991-2007. The study emphasizes on the scale, composition and technique effects as a result of the relationship between trade and environment. For the environmental quality, the CO2 data has been used alternatively. This article thus examines such relationship by estimating a panel regression CO2 emission model. The empirical results indicate a positive effect of increasing GPD on pollution of the countries in the first and second blocks. Additionally, the empirical results have shown that Iran could not benefit from its trade incomes with the OECD countries and in the Middle East. Also, due to the estimated positive coefficient of the capital-labor ration in the OECD block, the Iran's comparative advantage has been in dirty products.
The Relationship among Trade, Income and Environment in Iran
This paper examines causal relationships between environment, GDP and trade for Iran using annual data over the period 1970-201, applying the techniques of the long–run Granger non–causality test proposed by Toda and Yamamoto (1995). The results suggest that there is a long-run relationship between these variables. CO2 emissions have a positive long-run relationship with per capita income, indicating economic growth tends to worsen environmental quality. In addition, CO2 emissions have a positive long-run relationship with openness, supporting for the so-called race-to-the bottom hypothesis for developing countries. The Granger Causality test indicates strong unidirectional effects from GDP to CO2 emissions.
The Relationship Between CO2 Emission and Trade Openness in Turkey
2018
This study investigates the relationship between CO2 emissions and trade openness in Turkish economy during 1974-2013 by using Hsiao, Sims and VAR causality methods. It has been determined that there is a causality relationship between CO2 emission and trade openness in Turkey for the period 1974-2013 in econometric analyzes. These results indicate that trade openness and CO2 emissions affect each other.
The Impact of Trade Openness on Environmental Pollution
Regional Economic Integration and the Global Financial System, 2015
This chapter analyzes the impact of trade openness on environmental pollution in the newly industrialized countries that have focused on trade over the period 1971-2010 by using recently developed panel unit root, cointegration, and causality tests. The results indicate a cointegration relationship between the variables. The results also show that trade openness increases carbon dioxide emissions with the elasticity of 0.53 and there is a Granger causality running from trade openness to carbon dioxide emissions in the long run. These findings may provide some policy implications. Without taking into account impact of trade on pollutions, optimistic environmental Kuznets curve hypothesis would be invalid. Therefore, policymakers who decide on environment policies should pay attention to not only growth effects but also trade effects on pollutions. Future empirical analysis would expose the new evidences for governmental policies and environmental regulations to change these effects p...
Trade Liberalization and Environmental Pollution in Iran
Journal of Economic Policy Researches / İktisat Politikası Araştırmaları Dergisi
The environment is one of the main concerns in global policies and affects many other factors including the economy. Trade liberalization would affect environmental quality through its effect on production. This study aims to express the effect of the trade liberalization policy on environmental pollution in the frame of a multi-regional system model. Thus, the GTAP-E model was utilized for the year 2019, so that the environmental consequences (in terms of measurement of CO2 emission) could be studied as the result of reducing the tariffs on import in the forms of two scenarios. In the first scenario, the import tariff on agricultural, industry and services products was reduced by 5%, and in the second scenario, the import tariff on the agricultural, industry and services sectors was reduced by 5%, 10% and 15%, respectively. The results obtained in both cases indicate a reduction in the effect of scale, technique and composition. The results indicate that an import tariff reduction in the various sectors of the economy reduces pollution emissions and its effects improve the environment. The second scenario has a greater effect on the different sectors and also is closer to the reality of Iran's economy.
THE NEXUS BETWEEN TRADE OPENNESS AND CO2 EMISSIONS IN SELECTED BIMP-EAGA COUNTRIES
This study is to examine the relationship between trade openness and CO 2 emission in selected BIMP-EAGA countries for the period 1970-2008 using annual time series data. Augmented Dickey Fuller test, Johansen and Juselius test and Vector Error Correction Model have been employed to conduct the analysis. According to the empirical analysis, the longrun relationship is found between trade openness and environmental quality in Malaysia. The findings also indicate that there is a short-run uni-directional relationship in the Philippines. As a result, to lessen the environmental harm, countries become more open in trade in order to gain better transfer of new clean technology, knowledge and skills to improve their industrialization processes and achieve long-term environmental sustainability.
Trade openness and CO2 emissions nexus in Oman
Entrepreneurship and Sustainability Issues
Trade Openness (TO) has a strong role in the development of an economy but its impact on the overall environmental profile of a country is debatable. This analysis is focused to test how trade openness affects CO2 emissions in Oman. Unit root tests are conducted and ARDL model is employed using data from 1972-2014. The results of the study suggested that both Gross Domestic Product (GDP) per capita and trade openness seem to have the positive impact on CO2 emissions. It means that a higher GDP per capita and trade openness destructs the environment in the country. The results leave space for Oman's government to consider the environment while devising its trade policies.
This chapter analyzes the impact of trade openness on environmental pollution in the newly industrialized countries that have focused on trade over the period 1971-2010 by using recently developed panel unit root, cointegration, and causality tests. The results indicate a cointegration relationship between the variables. The results also show that trade openness increases carbon dioxide emissions with the elasticity of 0.53 and there is a Granger causality running from trade openness to carbon dioxide emissions in the long run. These findings may provide some policy implications. Without taking into account impact of trade on pollutions, optimistic environmental Kuznets curve hypothesis would be invalid. Therefore, policymakers who decide on environment policies should pay attention to not only growth effects but also trade effects on pollutions. Future empirical analysis would expose the new evidences for governmental policies and environmental regulations to change these effects positively.