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Maritime Transportation, Environmental Pollution, and Economic Growth in Iran: Using Dynamic Log Linear Model and Granger Causality Approach

Author

Listed:
  • Saeed Mohamad Taghvaee

    (Ports and Maritime Organization, Bushehr Ports and Maritime Authority, Bushehr, Iran.)

  • Behrouz Omaraee

    (Department of Maritime Transportation, Islamic Azad University of Khark, Bushehr, Iran)

  • Vahid Mohamad Taghvaee

    (Department of Economics, Persian Gulf University, Bushehr, Iran.)

Abstract

The main purpose of this study is to estimate the maritime transportation elasticities of the environmental pollution and economic growth in Iran within the short-run and long-run to find out the relationships among maritime transportation, environmental pollution and economic growth. The lagged endogenous model (a dynamic log-linear model that we used) is estimated using two distinctive approaches: single-equation one with OLS and simultaneous-equations with GMM. The results of both methods nanimously show that the maritime transportation elasticities of both environmental pollution and economic growth are low and positive just like the economic growth elasticities of environmental pollution. Therefore, environmental pollution has a positive relationship with the maritime transportation and economic growth, confirming the Pollution Haven Hypothesis; and the economic growth responds to the maritime transportation slightly and slowly. The policy-makers are advised to improve the environmentally-polluting infrastructure of the maritime transportation rather than restricting the growth of this sector.

Suggested Citation

  • Saeed Mohamad Taghvaee & Behrouz Omaraee & Vahid Mohamad Taghvaee, 2017. "Maritime Transportation, Environmental Pollution, and Economic Growth in Iran: Using Dynamic Log Linear Model and Granger Causality Approach," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 21(2), pages 185-210, Spring.
    • Handle: RePEc:eut:journl:v:21:y:2017:i:2:p:185
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    References listed on IDEAS

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    Cited by:

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    2. Alexandra Fratila (Adam) & Ioana Andrada Gavril (Moldovan) & Sorin Cristian Nita & Andrei Hrebenciuc, 2021. "The Importance of Maritime Transport for Economic Growth in the European Union: A Panel Data Analysis," Sustainability, MDPI, vol. 13(14), pages 1-23, July.
    3. Rida Waheed, 2023. "Energy Challenges, Green Growth, Blue Indicators, and Sustainable Economic Growth: A Study of Saudi Arabia," Evaluation Review, , vol. 47(6), pages 983-1024, December.
    4. Mohamad Taghvaee, Vahid & Agheli, Lotfali & Assari Arani, Abbas & Nodehi, Mehrab & Khodaparast Shirazi, Jalil, 2019. "Environmental pollution and economic growth elasticities of maritime and air transportations in Iran," MPRA Paper 100101, University Library of Munich, Germany.
    5. Ştefan Cristian Gherghina & Mihaela Onofrei & Georgeta Vintilă & Daniel Ştefan Armeanu, 2018. "Empirical Evidence from EU-28 Countries on Resilient Transport Infrastructure Systems and Sustainable Economic Growth," Sustainability, MDPI, vol. 10(8), pages 1-34, August.
    6. Kiracı Kasım & Akan Ercan, 2020. "Empirical analysis of the relationship between trade wars and sea—air transportation," Economics and Business Review, Sciendo, vol. 6(3), pages 23-44, August.
    7. Jalil Khodaparast Shirazi & Vahid Mohamad Taghvaee & Mohamad Nasiri & Abbas Assari Arani, 2020. "Sustainable development and openness in oil-exporting countries: green growth and brown growth," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 9(1), pages 1-19, December.
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    More about this item

    Keywords

    Maritime Transportation; Environmental Pollution; Economic Growth; Trade; CO2 Emissions. JEL Classification: C22; Q18; Q44.;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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