Investigation the Effects of Structural Changes and Economic Growth on Carbon Dioxide Emissions in Iran: Application of the ARDL Model

Different factors can cause increasing air contamination such as CO2. Understanding factors affecting atmosphere gaseous change is important for management and reducing air contaminants. Therefore the current study attempted to investigate the effect of growth amount of value added in different economic sector, economic growth, energy consumption, urbanization growth, opening trade grade and financial development on diffusion of carbon dioxide.

The environmental pollution estimated using the Auto Regressive Distributed Lag (ARDL) model and error correction method (ECM) for Iran in the during 1985-2017. In addition, the long run relationship between model variables, short run dynamics of the model and the speed of adjustment of short run imbalances to long run estimated.

The findings of the long-term model showed that the growth of urbanization with a value of 0.527% had the most positive effect and the degree of trade openness with a value of 0.125% had the least negative effect on carbon dioxide emissions.

The results of this study show the negative effect of economic growth on the amount of carbon dioxide emissions in the long term, that in each period, about 14% of the imbalances of the instability of the amount of carbon dioxide emissions are resolved, and about seven The period is necessary for the short-term balance error to be adjusted and the model to return to the long-term balance, and also the presence of a positive relationship between the growth of the country's economic sub-sectors and the emission of carbon dioxide in the short-term and long-term will increase this pollutant.