Direct and indirect effects of corruption on pollution in Iran; By ARDL approach

Almost all human economic activities affect directly or indirectly on environment and ecological system, Corruption for reasons including inadequate regulatory system, lack of respect for law, weak democracy, and equality of individuals against law, lack of accountability on environmental issues. Because of the importance of corruption role in environmental degradation, in this study is tried to evaluate of direct and indirect effects of corruption on CO2 emissions as an indicator of pollution in the country be paid. Therefore, has been used of annual data 1984-2015 for Iran and using Auto Regressive Distributed Lag (ARDL). The results of estimating direct effects model showed a positive and significant relationship corruption with CO2 emissions in the long run. And in indirect effects model corruption relationship with per capita income (as the intermediary channel) is negative and significant. Prominent issue in the study is high share direct effects of corruption on pollution compared to indirect effects. Therefore, it is recommended that authorities have more supervisory in control corruption.