Economic Growth and Air Pollution in Iran During Development Programs

Abstract

Air pollution means combination of air with gases that lead to decrease in quality of the air. Pollutant elements are Carbon dioxide, Monoxide, Sulfur Dioxide and etc. Estimated annual losses of mortality due to urban air pollution are 640 million dollars i.e. 5100 billion Rials that is equivalent 0.57 percent of GDP. The disease caused of urban air pollution creates 260 milliondollar or 2100 billionRial cost (0.023 percent of GDP) for the economy of Iran. (World Bank, 2005). Grossman and Krueger (1991) has analyzed relationship between air pollution and economic growth in USA. GNP per each person, time and pollution index were input in that model. Results show that there is relationship like “U” between GNP per each person and SO2 emission. Lee (1996) has surveyed air pollution in Korea during 1985-92. The effects show that CO and income have relationship as “U” whereas Sulfur Dioxide, NO2 and Ozone did not have it. Khan (2002) has perused correlation between revenue in each family and CO, NO and Ozone in USA for the year of 1990. One of the important things is that in this research population, labor force, unemployment, literate people, workmen’s, housekeeper, rental house that have an effect on pollution, were Exogenous Variables. Consequences expressed that linkage in equation between income and pollution of gasses is inverse. Pazhoyan and etal (2007) have examined respect of economic growth and air pollution with Kuznets hypothesis in 67 countries with different income. The effect of economic growth, rural population, provision of environment, number of cars, the ratio of summation of export and import on GNP have been surveyed and results emphasized Kuznets curve for environment in those countries. This study surveys relationship between air pollution and economic growth and also, evaluation of Economical and Social Development Programs in the field of air pollution reduction. For this purpose, the study used data for 1979-2005 from the Balance Sheet Energy (2009), Iran Department of Environment (2009), Central Bank of Iran (2009) and World Development Reports (2008) has been collected. Calculation and estimates is done by Shazam and SPSS packages.