Macroeconomic Variables and Environmental Pollution in Selected Countries (Panel Data Approach)

اقتصاد و توسعه منطقه ای

Article 5, Volume 19, Issue 3, May 2012   

Document Type: Research article

DOI: 10.22067/erd.v1391i4.24078

Author

Mohamad Reza Mohammadvand Nahidi^*

Abstract

Macroeconomic Variables and Environmental Pollution in Selected Countries (Panel Data Approach)

Mohamad Reza Mohammadvand Nahidi
Assistant Professor of Economics, Tabriz Branch, Islamic Azad University
Parisa Gholipur feizi
M.A. graduated in Economics, Islamic Azad University, Tabriz, IRAN

Abstract
Since investigation of the economic aspects of greenhouse gases and its environmental effects are important in present evermore increasing of greenhouse gases condition, in this research the relationship between greenhouse gas or co2 emission and three macroeconomic variables, level of real domestic gross production, energy consumption and direct foreign investment is evaluated using panel data method for eighteen selected Middle Eastern countries during 1995-2007. The causative relationship between emission of CO2 and three macroeconomic variables has been studied using Granger causative test and Panel Data approach. The results show the positive effect of energy consumption, foreign direct investment and GDP on emission of pollution and they confirm EKC (Environmental Kuznets Curve) hypothesis.

JEL Classification: C23, P28, O50

Keywords: Co2 emission (GHG), Domestic Gross Production, Environmental Kuznets Curve, Granger causative test

Keywords

Co2 emission (GHG); Domestic Gross Production; Environmental Kuznets Curve; Granger causative test