Shahid Beheshti University Advanced Environmental Sciences 3115-7173 11 4 2013 12 22 The Effect of Gross Domestic Product andEnergy Consumption on Water Pollution in Iran The Effect of Gross Domestic Product andEnergy Consumption on Water Pollution in Iran 97347 FA Houman Liaghati Associate professor, Department of Environmental Economics, Environmental Science Research InstituteUniversity of Shahid Beheshti, Tehran 0000-0003-0604-6328 Halimeh Jahangard PhD Candidate of Agricultural Economics, Department of Agricultural Economics,University of Mashhad, Mashhad Naghmeh Mobarghei Dinan Assistant professor, Department of Environmental Economics, Environmental Science Research InstituteUniversity of Shahid Beheshti, Tehran 0000-0002-2922-3078 Journal Article 2015 09 09 Nowadays, water pollution is one of the most serious environmental challenges in managerial policies of the world. On the other hand, the effect of economic development of the countries on pollution emission is undeniable. The mail goal of this study is to investigate the amount and direction of theeffect of gross domestic production and energy consumption on water pollution in Iran. The investigation was performed using 1973-2007 time series data and the vector error correction model (VECM). The results showed that, when gross domestic product rises, although the amount of pollution increases at the beginning, eventually the amount of water pollution decrease as this process goes on. The results also showed that a 1% increase in energy consumption results in 0.55% increase in water pollution. Considering this positive effect of energy consumption on water pollution, the implementation of policies for increasing energy efficiency should result in a pollution decrease. Estimation of the error correction coefficient indicated that it would take more than 1.54 year to adjust the shocks caused by water pollution in Iran. Nowadays, water pollution is one of the most serious environmental challenges in managerial policies of the world. On the other hand, the effect of economic development of the countries on pollution emission is undeniable. The mail goal of this study is to investigate the amount and direction of theeffect of gross domestic production and energy consumption on water pollution in Iran. The investigation was performed using 1973-2007 time series data and the vector error correction model (VECM). The results showed that, when gross domestic product rises, although the amount of pollution increases at the beginning, eventually the amount of water pollution decrease as this process goes on. The results also showed that a 1% increase in energy consumption results in 0.55% increase in water pollution. Considering this positive effect of energy consumption on water pollution, the implementation of policies for increasing energy efficiency should result in a pollution decrease. Estimation of the error correction coefficient indicated that it would take more than 1.54 year to adjust the shocks caused by water pollution in Iran.

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