Carbon Emissions and Economic Growth: The Iranian Experience

Abstract

This paper attempts to investigate the causal relationship among CO2 emissions and economic growth for Iranian economy. The sample period covered annual data during 1965-2004. By applying the techniques of unit-root test and the long-run Granger non-causality test proposed by Toda and Yamamoto (1995), we investigate the causal relationship between the economic growth and CO2 emissions. The results of unit root tests show that variables are I (1) and results of Granger causality indicate a unidirectional causality from gross domestic product per capita to CO2 emissions.

Keywords: CO2 Emissions, Economic Growth, Environmental Kuzents Curve

JEL Classification: Q56