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Naghmeh Ghorashi, Abbas Alavi Rad,
Volume 6, Issue 2 (Apr-June 2017)
Abstract

Introduction: The causal dynamics between environment, health expenditures and economic growth has recently started to be studied in the economics literature for both developing and developed countries.

Methods: This study examines the causal relationship between CO2 emissions, health expenditures and economic growth using dynamic simultaneous-equations models for Iran over the period 1972-2012.

Results: Our empirical results show that there is bidirectional causality relationship between CO2 emissions and economic growth; there is also unidirectional causality relationship from health expenditures to economic growth. The positive bidirectional causality relationship between CO2 emissions and economic growth will be very important to environmental quality in next years in Iran.

Conclusion: It is clear that government would like to increase economic growth over the period of next Five-Year Development Plan. It seems that policymakers must examine the requirements for investment to promote environmental protection and increase the technological transfer to reduce the environmental damage.


Naghmeh Ghorashi, Abbas Alavi Rad,
Volume 7, Issue 2 (Apr- June 2018)
Abstract

Introduction: The national trend indicates that various provinces of Iran have experienced in attaining economic growth exclusive of parallel observing a boost in CO2 emissions. It is clear that the effects of CO2 emissions on health indicators such as death rate, infant mortality, and health expenditures have been ignored by policy makers over the last decade.
 
Methods: This study for the first time in previous literature in Iran, utilizes 1989-2016 panel data of the three economic sectors (agriculture, industry and services) of Iran to examine the effect of financial development on CO2 emissions using Pooled Mean Group (PMG) and Mean Group (MG) Regression techniques. The potential impact of government size and capital stock on CO2 emissions is also analysed.
 
Results: According to empirical results, in the long-run, government size and capital stock increase CO2 emissions, while financial development compact it. However, the results show these variables don’t have statistically significant effect on CO2 emissions in short-run.
 
Conclusion: The study opens up new policy insights to control the Environment from degradation by financial development on economic sectors. It recommends that policy makers should realize the potentiality of the financial development in minimizing the CO2 emissions. Therefore, the policy makers need to facilitate more financing at lower costs for investment in environmental projects.

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