The Effect of Gross Domestic Product andEnergy Consumption on Water Pollution in Iran

Document Type : Original Articles


1 Associate professor, Department of Environmental Economics, Environmental Science Research InstituteUniversity of Shahid Beheshti, Tehran

2 PhD Candidate of Agricultural Economics, Department of Agricultural Economics,University of Mashhad, Mashhad

3 Assistant professor, Department of Environmental Economics, Environmental Science Research InstituteUniversity of Shahid Beheshti, Tehran


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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