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Impact of Innovation on Pollution Emission of Iranian Provinces in the Framework of Environmental Kuznets Curve (Spatial Econometric Approach)

Author

Listed:
  • Darbidi, Maryam

    (Ph.D Candidate in Economics, Razi University)

  • Delangizan, Sohrab

    (Associate Professor of Economics, Razi University)

  • Fatahi, Shahram

    (Associate Professor of Economics, Razi University)

  • Karimi, Mohammad Sharif

    (Assistant Professor of Economics, Razi University)

Abstract

Identification the affecting drivers on improving the quality of the environment is one of the most effective steps towards achieving environment friendly economic growth and development, thus moving to the third stage of the environmental Kuznets curve. In the present study, the impact of innovation as one of the most important affecting variables on emission of pollution in the Iranian provinces in the framework of Kuznets curve over the period of 2007- 2016 has been estimated with the spatial econometric approach. Two indicators of R&D costs and human capital are used as an alternative to innovation. The results indicate that R&D and human capital have a significant negative impact on air pollution emissions in the Iranian provinces. Therefore, policymakers should reduce pollution emission by planning to increase local investment in R&D activities and improving the quality of human capital. Also, the increase in R&D of adjacent provinces through spatial spillover effects reduces contaminant emission. The findings also suggest that innovation causes that the return point of Kuznets curve occurs at a lower GDP per capita level.

Suggested Citation

  • Darbidi, Maryam & Delangizan, Sohrab & Fatahi, Shahram & Karimi, Mohammad Sharif, 2020. "Impact of Innovation on Pollution Emission of Iranian Provinces in the Framework of Environmental Kuznets Curve (Spatial Econometric Approach)," Quarterly Journal of Applied Theories of Economics, Faculty of Economics, Management and Business, University of Tabriz, vol. 7(3), pages 71-98, October.
    • Handle: RePEc:ris:qjatoe:0199
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    More about this item

    Keywords

    Environmental Kuznets Curve; Innovation; Research and development costs; Spatial Durbin Model;
    All these keywords.

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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