Examining the Impact of Financial Development and Energy Consumption on the Environmental Degradation in Iran in the Framework of the Environmental Kuznets Curve Hypothesis (EKC)

Today، environmental issues، especially water and air pollution problems havebecome a major global concern. Air pollution، affects the health of living organismsand natural ecosystems. According to various studies، financial development in acountry may attract Foreign Direct Investment (FDI) and higher degrees of researchand development (R&D). This، in turn can، increase the environmental performanceand thereby reduce environmental pollution. This investigation aims to examine therole of financial development and energy consumption in Iran during 1971-2007، inthe framework of the environmental Kuznets curve، using ARDL approach. According to results further financial development in Iran lead to decrease of CO2emissions. In addition، an increase in energy consumption in Iran is likely toincrease CO2 emissions. Also، the results reject the Environmental Kuznets Curvehypothesis in Iran in the long-term.