Investigating the Impact of FDI, Industrialization and Education on the Environment in Iran: Blanchard-Qoah Approach

اقتصاد و توسعه منطقه ای

Volume 31, Autumn&Winter2025 - Serial Number 28, February 2025

Document Type: Original Article

DOI: 10.22067/erd.2024.86583.1222

Authors

Saman Davaneghi¹; Seyyedkamal Sadeghi^{* 2}; Behrooz Pourhasan¹; Yusef Davaneghi³; Mehrdad Babazadeh⁴

¹Ph.D Student of Economy Department, Tabriz University, Tabriz,Iran

²Professor of Economy Department, Tabriz University, Tabriz,Iran

³Asistant Professor of Department of Education, Ardebil, Iran

⁴Ph.D Student of Economy Department, Tabriz University, Tabriz,,Iran

Abstract

Environmental pollution poses a serious challenge to human societies, as it significantly threatens the safety of human life. Industrialization and foreign direct investment are fundamental drivers of sustainable economic development. Additionally, education plays a crucial role in enhancing human capital and improving environmental quality.

This study employs the Blanchard-Quah technique to examine the effects of temporary and permanent shocks from foreign direct investment, industrialization, and education on carbon dioxide emissions in Iran between 1366 and 1399. The findings reveal that, in the short term, increases in foreign investment, industrialization, and education levels are associated with higher carbon dioxide emissions. This increase is primarily due to heightened energy production and consumption during this period.

However, in the long term, no significant relationship is found between these factors and carbon dioxide emissions. This suggests that self-regulating economic and environmental mechanisms have mitigated the initial negative impacts over time. Consequently, while foreign direct investment, industrialization, and education may contribute to increased pollution in the short term, they do not have a lasting effect on environmental pollution in Iran.

Keywords

Environmen; Pollution; Foreign Direct Investment; Industrialization; Education

References