Abstract
The present paper studies impacts of changes of oil and its products’ prices and economic growth on quality of the environment in Iran. Therefore, emission of carbon monoxide is regarded as the pollution index of environment and an Auto-Regressive Distributed Lag (ARDL) econometric model has been used to analyze relations among the variables. The required data has been exploited through energy balance sheets and the related statistical letters. It is considered seasonally for a selected region in Iran (Isfahan province) during the period 2005-2014. Obtained results demonstrate regional economic growth variable as well as population has a significant impact on quality of the environment in Iran under the current regional conditions and according to pollution haven theory. Moreover, it has been led to increased pollution of the environment. Also, changing and increasing of oil and its products' prices have had a significant and decreasing impact on regional environmental pollution in Iran. It is in a way that Iranian targeted subsidy plan has had a decreasing impact on pollution after one period. Given to the obtained coefficients through model estimation, however, this factor could not neutralize the impact of the other two variables. DOI: 10.5901/mjss.2016.v7n4p66
Highlights
Except clean energies like the solar energy, consumption of many of energies has caused pollution
A structure of consumption and production, based on the cheap energies and cheap oil products, has formed in the long run in the society of Iran; rearranging this structure according to the real relative prices cannot happen immediately
According to the results reported in table 2, there is a significant and positive relationship between economic growth and Isfahan city population and carbon monoxide emission; the significance of population lag shows that the population variable effect happens over the time and as the urban population increases and degrades the environment
Summary
Except clean energies like the solar energy, consumption of many of energies has caused pollution From this point, energies have negative externalities and according to the theories they must be taxed; for a very long time the price of energy and the prices of the fuels have been kept low that has led to pollution. According to the deviated prices of energies in the building sector, the development of this sector has happened with no attention to the phenomenon of the energy waste or at least it has been paid less attention It is expected as the prices of the oil products and fuels increase and become more realistic in the consumption sector, the consumer shifts from choosing much-consuming energy goods to less-consuming energy ones
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