IDEAS home Printed from https://ideas.repec.org/a/ris/qjatoe/0023.html
   My bibliography  Save this article

The Commodity Futures Contract Pricing Using Spot Price Dynamics: Implication of Models in Iran’s Gold Futures Market

Author

Listed:
  • Esmaeili Razi, Hossein

    () (Assistant Professor of Economics and Banking, Institute of Hasht Behesht)

  • Dallali Esfahani , Rahim

    () (Professor of Economics, University of Isfahan)

  • Samadi , Saeid

    () (Associate Professor of Economics, University of Isfahan)

  • Parvardeh , Afshin

    () (Associate Professor of Statistics, University of Isfahan)

Abstract

Economic growth is the main purpose of economic policies. However, when economic growth is rapid we have serious environmental harm. Hence, a potential contrast between the economic policies and environmental state is stated in the Environmental Kuznets Curve.The main purpose of this study was to estimate the static and dynamic environmental Kuznets curve for the Iranian economy with assuming renewable and fossil energy simultaneously in the model. On the other hand, in this study we considered non-linear pollution function. In order to estimate the parameters related to this function should be used nonlinear methods. In this study, environmental Kuznets curve is estimated using genetic algorithms, (accurate method for numerical optimization). Comparison of the model predictions shows that the power of LAD in prediction is better than the least squared errors (LS). Also the dynamic model is powerful than static model. The results further indicate that the Iranian economy is located on the upward of environmental Kuznets curve. The other hand 12% of the total energy must be used by renewable energy, in order to Iranian economy perch at the critical point of environmental Kuznets curve.

Suggested Citation

  • Esmaeili Razi, Hossein & Dallali Esfahani , Rahim & Samadi , Saeid & Parvardeh , Afshin, 2015. "The Commodity Futures Contract Pricing Using Spot Price Dynamics: Implication of Models in Iran’s Gold Futures Market," Quarterly Journal of Applied Theories of Economics, Faculty of Economics, Management and Business, University of Tabriz, vol. 2(3), pages 145-164, December.
  • Handle: RePEc:ris:qjatoe:0023
    as

    Download full text from publisher

    File URL: http://ecoj.tabrizu.ac.ir/jufile?c2hvd1BERj00Njc0Jl9hY3Rpb249c2hvd1BERiZhcnRpY2xlPTQ2NzQmX29iPWJhZGM5YmJiMGE5YjdiMDE4YjZmY2E2ZTgwNDM2NGZl
    File Function: Full text
    Download Restriction: no

    More about this item

    Keywords

    ¬Pollution; Fossil Energy; Renewable Energy; Environmental Kuznets Curve; Least Absolute Deviation Error;

    JEL classification:

    • Q29 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Other
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:qjatoe:0023. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sakineh Sojoodi). General contact details of provider: http://edirc.repec.org/data/fetabir.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.