Abstract

Abstract. The implementation of production plans based on material interests without regard to environmental issues would impose social and economic costs on society. Therefore, achieving sustainable development without considering environmental issues is impossible. As a member of the Kyoto Protocol, a protocol on climate pollution, Iran is required to execute effective measures to reduce emissions of carbon dioxide. Therefore, it is important to investigate factors influencing the reduction in carbon dioxide emissions in the country. This study examines the effects of innovation variables (i.e. patents), the increase in real GDP and oil price on carbon dioxide emission during the period 1987- 2010 th rough vector error-correction model in Iran. The number of patents is intended as a substitute to green innovations. The results of present study show that in long run, innovations (patents), and the dummy variable of Convention on Climate Change have negative effects while real GDP has positive effects upon emission of carbon dioxide.

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