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Industrial Growth and Sustainable Development in Iran

Author

Listed:
  • Hojat Parsa

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

  • Hadi Keshavarz

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

  • Vahid Mohamad Taghvaee

    (Department of Economic Development and Planning, Faculty of Management and Economics, Tarbiat Modares University, Tehran, Iran.)

Abstract

This study aims to measure how much the industrial sector suppresses the development process to be sustainable in Iran. We employ a quadratic-log form of regression model to test the Industrial Environmental Kuznets Hypothesis. In addition, we use a Vector AutoRegressive model to estimate the nexus among the industrial growth, income inequality, environmental pollution, and energy consumption in Iran during 1971 and 2014. The results confirm the Industrial Environmental Kuznets Hypothesis. Moreover, they show that all the three variables present the same response to the shock in the industrial growth since all the responses are increasing. It provides preponderance of evidence for the incompatibility of industrial growth with social, environmental, and resource development in Iran. This sector should be modified, improved, and reconstructed to pave the way for harmonization among the quadruple layers of sustainable development including industrial growth, environmental quality, social satisfaction, and optimal usage of resources. The policy-makers are advised to consider the sustainability properties in their development strategies as the development process evolves comprehensively.

Suggested Citation

  • Hojat Parsa & Hadi Keshavarz & Vahid Mohamad Taghvaee, 2019. "Industrial Growth and Sustainable Development in Iran," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 23(2), pages 319-339, Spring.
    • Handle: RePEc:eut:journl:v:23:y:2019:i:2:p:319
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    Citations

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    Cited by:

    1. Oral, Hasan Volkan & Kakar, Ahmad Ehsan & Saygin, Hasan, 2021. "Feasible industrial sustainable development strategies for the Herat Province of Afghanistan," Technology in Society, Elsevier, vol. 65(C).
    2. 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.
    3. Vahid Mohamad Taghvaee & Mehrab Nodehi & Abbas Assari Arani & Yaghoob Jafari & Jalil Khodaparast Shirazi, 2023. "Sustainability spillover effects of social, environment and economy: mapping global sustainable development in a systematic analysis," Asia-Pacific Journal of Regional Science, Springer, vol. 7(2), pages 329-353, June.
    4. Vahid Mohamad Taghvaee & Abbas Assari Arani & Susanne Soretz & Lotfali Agheli, 2023. "Diesel demand elasticities and sustainable development pillars of economy, environment and social (health): comparing two strategies of subsidy removal and energy efficiency," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(3), pages 2285-2315, March.
    5. Zarei, Samira, 2020. "Analyzing the Asymmetric Effects of Inflation and Exchange Rate Misalignments on the Petrochemical Stock index: The Case of Iran," MPRA Paper 99101, University Library of Munich, Germany.

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