The Relationship between Urban Households Energy and Transportation Demand with Environmental Pollution through Greenhouse Gas Emissions in the Provinces of Iran

Using integrated data and Heckman two-stage approach، this study investigates the relationship between energy demand (including electricity، petrol and natural gas) and transportation (annual consumption of gasoline by cars owners) with environmental pollution. To do so، the cost-income data for approximately 14000 urban households is used over the year 2009. Following estimating the demand function of energy and transportation، we have estimated the coefficients of pollution emissions originated from consumption of electricity، gas and gasoline. Then we calculated the pollution emission of these three energy careers. The results indicate that income has a positive and significant effect on consumption in all three types of energy. The results also show that the highest rate of carbon dioxide emissions associated with the electricity، and gasoline has the lowest rate of carbon dioxide diffusion. Estimating the dioxide emission in all three types of energy in Iran’s states indicates that the highest rate of CO2 diffusion belongs to Tehran Province. In contrast the three provinces named Kohgiluyeh & Boyorahmad، North Khorasan and Ilam have the lowest rate of carbon dioxide emission.