The Effect of Oil Price Fluctuations on Environmental Pollution in Iran Based on the New GAS Model
Keywords:
GAS model, CO2 emission and Kuznets' theoryAbstract
Today, air pollution caused by emitting pollutants is one of the most serious concerns in the world. CO2 gas emission is considered as one of the most significant and effective pollutants. In addition, the consumption and production of fossil fuels such as oil is one of the factors affecting the over-emission of this kind of gas. Due to the significance of this subject, the present study investigated the effect of oil price fluctuations on the amount of CO2 produced in Iran, as well as the degree of trade openness and Kuznets theory in relation to economic growth and emission of pollutants during 1970-2020. The GAS method was used to estimate the oil price fluctuations and the ARDL method was applied for evaluating the short-term and long-term effects. The results of this study indicated that oil price fluctuations and the degree of trade openness play a negative effect on CO2 emission. In this study, Kuznets' theory was confirmed in relation to economic growth and pollutant emission. In other words, the GDP development can have a negative relationship with CO2 emission after the initial stages. However, such effect is much lower than its positive effect on pollution in the initial stages of development.
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Copyright (c) 2025 Mahdi Pendar; Elham Vafaei, Azhin Javaheri (Author)
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