Assessing the Relationship between Greenhouse Gases Emission from Agriculture Section Activities, Agricultural Value-Added and Energy Consumption (Test of the Environmental Kuznets Curve in Iran)

چکیده مقاله

The Environmental Kuznets Curve (EKC) hypothesis has become one of the stylized facts of environmental and resource economics. Due to the fact that the majority of Iran’s GDP growth depends on agricultural activities, agricultural value added and energy consumption from this section are regarded as economical growth. Greenhouse gases emissions which are results of agricultural activities are placed in second position after transportation in Iran. Nitrogen oxides refers specifically to NOx (NO and NO2), Sulfur dioxide (SO2), Sulfur trioxide (SO3), and Suspended Particulate Matter (SPM) are considered to environmental pollution. To achieve the results, first of all the stationary unit root tests are investigated by Augmented Dickey Fuller and Phillips-Perron tests for annual time series data from 1994 to 2010. Secondly, the co-integration relationships are tasted by using the Johanson bi-variate co-integration model. Then by considering the Granger causality, the existence of EKC is investigated via two models (Value added and energy consumption as the dependant variables and GHGs emissions as independent variables). As a result, all the estimated bi-variate models contain one co-integrating vector implying that one linear combination is stationary. In great extent, the results indicated that a relationship exists between economic growth proxies and greenhouse gases emissions and an inverted U-shaped relationship is concluded by estimating the quadratic equations for model which energy consumption is dependant variable and in some extent, inverted N-shaped relationship is resulted for cubic model which value added is dependant variable during this period.

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