Investigation of causality between GNP and greenhouse gases (Case study: dioxide carbon in Iran)

Saleh, I.; Sha&#039;bani, Z.; Sadat Barikani, H.; Yazdani, S.

doi:10.30490/aead.2009.126298

Investigation of causality between GNP and greenhouse gases (Case study: dioxide carbon in Iran)

Authors

I. Saleh ¹

Z. Sha'bani ²

H. Sadat Barikani ²

S. Yazdani ¹

¹ Associate Pro., Tehran Un., Karaj, Iran

² MS Student in Agricultural Economic and Development, Tehran Un., Karaj, Iran

10.30490/aead.2009.126298

Abstract

Economic aspects of greenhouse gases diffusion and it's impacts on environment play important role in economies of different countries. The objectives of the study are to investigate the relationship and causality between GDP and dioxide of carbon gas and to examine the environmental Kuznet`s curve in Iran. Standard Granger Causality and Hsiao's Granger Causality tests were employed using OLS technique to estimate a quadratic function. The results showed that there is a one-side relationship from the volume of dioxide of carbon gas to GDP. The results also indicated that since
the growth rate of the volume of dioxide of carbon is greater than growth rate of GDP, the shape of the environmental Kuznet`s curve does not have the expected form shown in the literature. Therefore, the economic growth of Iran is not in a situation in which it can decrease the environmental polluters.

Keywords

Gross Domestic Product (GDP)

Dioxide of Carbon (CO2)

Kuznet`s Curve

Granger and Hsiao Causality Test

Iran

Environmental