The Relationship between Agricultural and Industrial Development with Water Pollution in Iran (Toda- Yamamoto and DOLS Approaches)

The investigation of the relationship between water pollution and its determinants is one of the important issues in environmental economics and has been studied empirically in recent years. Moreover, in most empirical studies the nexus between industrial and agricultural development and water pollution has not been considered. So, to address this lacuna, the main objective of this paper is to examine the effects of industrial and agricultural development on water pollution emission in the Iranian economy over the period of 1975 to 2014 in short-run and long-run. For this purpose, the empirical econometric model has been estimated by T-Y and DOLS approaches for these sectors during the period of study. The results of this paper show that the EKC curve is confirmed in Iran and industrial value added and population density in urban areas have positive and significant effects on water pollution. Moreover, the value added of agricultural sector has negative and significant effect on water pollution.