Investigation of the Relation between Causality of Social Capital and CO2 Emission in Iran in the Period of (1978-2009)

Considering, the effect of social capital on the improvement of quality of    environment and sustainable development, the main goal of this study is the investigation of relation of Granger Causality between two varieties, social capital and emission of CO2, in Iran. In this study, using data in the period of 1978-2009, the relation of Granger Causality has  been studied via 3 methods of Hsiao’s Granger Causality, Toda and Yamamato, and Bound Testing. The results of this study established a one way relation of Causality of social capital and CO2 emission in Iran. As a result, this study shows that social capital has a significant role to play in reduction of air pollution.