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The impact of trade openness on CO2 emissions in Iran, 1971-2005

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  • Fotros, M.H.
  • Maaboudi, R.

Abstract

The increase of greenhouse gases (GHG) emissions is of major environmental problems. Economic growth impels intensive use of resources and as a result, more residues and wastes thrown in the nature that could lead to environmental degradation. This article tries to trace the eventual relationship between trade openness and environmental degradation in Iran. We choose a model in which CO2 emissions are related to economic growth, trade openness, capital stock, labor force, and the energy consumption of Iran for the period of 1971-2005. The approach of generalized method of moments (GMM) is used for analyzing the variables’ relationships. The results indicate that economic growth has a negative effect on the CO2 emissions. And, the trade openness has significant positive impact on the CO2 emissions.

Suggested Citation

  • Fotros, M.H. & Maaboudi, R., 2010. "The impact of trade openness on CO2 emissions in Iran, 1971-2005," Conference papers 332030, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:332030
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    References listed on IDEAS

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    4. Keith Walsh, 2006. "Trade in Services: Does Gravity Hold? A Gravity Model Approach to Estimating Barriers to Services Trade," The Institute for International Integration Studies Discussion Paper Series iiisdp183, IIIS.
    5. Anderson, James E, 1979. "A Theoretical Foundation for the Gravity Equation," American Economic Review, American Economic Association, vol. 69(1), pages 106-116, March.
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