The Effect of Technology Overflows on CO2 Emissions in Iran

Although economic growth is one of the most important objectives of governments, higher economic growth is mainly associated with an increase in environmental pollution. The experience of developed countries and some developing countries shows that, with increasing economic growth, environmental pollution is first increased and, then, it is reduced due to the attention to the environment at the level of production per capita; this can be shown in the Kuznets environmental curve. The main objective of this study is to determine the level of per capita income which causes reduced emissions of pollution due to considering the environmental issues, as well as studying the impact of technology overflow index on the turning point of the curve. In this regard, using the models of the demand of capital-intermediate goods import, the technology overflow index was calculated and its effect on the Kuznets environmental curve theory during the period of 1966 to 2013 was reviewed. The results showed that the technology overflow variable not only had a positive and significant impact on carbon dioxide emissions, but it also made the Kuznets environmental curve's turning point possible at a higher per capita income.