The Impact of Stocks Traded-Total Value, Foreign Direct Investment, Number of Students and Fossil Fuel Energy Consumption on NO2 Emissions in Iran

Document Type: Research Article

Authors

1 Imam Khomeini International University, Qazvin, Iran

2 Mazandaran University, Babolsar, Iran

3 Sohrevardi higher education Institution, Qazvin, Iran

10.22097/eeer.2019.195716.1100

Abstract

The purpose of this paper is to examined the empirical effects of stocks traded-total value, foreign direct investment, number of students, and fossil fuel energy consumption on nitrogen dioxide (NO2) emissions in Iran using time series data for the period 1978–2012. To achieve this goal, we applied the autoregressive distributed lag (ARDL) bounds testing approach. Findings indicate that foreign direct investment, fossil fuel energy consumption, and number of students stimulate NO2 emissions in the long run. Based on these findings, the study recommends that Iran reduce emissions by expanding its existing Carbon Capture, Utilization, and Storage plants; capitalizing on its vast solar and wind energy; reducing high subsidies of the residential electricity scheme; and aggressively investing in energy research to build expertise for achieving electricity generation efficiency. It must be noted that greenhouse gas reduction policies cannot produce immediate results in changing wind and precipitation patterns and thus mitigating climate change effects.

Keywords


Agrawalla, R. K., and Tuteja S. K. (2007). Causality between stock markets development and economic growth: a case study of India. Journal of Management Research, 7(3), 68-158.

AhmadN., and Du L. (2017). Effects of energy production and CO2 emissions on economic growth in Iran: ARDL approach. Energy, 123, 521-37.

Al-Mulali, U. (2012). Exploring the bi-directional long run relationship between urbanization, energy consumption and carbon dioxide emission. Energy; 46,156–67.

Altinay, G., and Karagol, E. (2004). Structural break, unit root and causality between energyconsumption and GDP in Turkey. Energy Econ, 26, 985–994.

Ardestani, M., Shafie-Pour, M., and Tavakoli, M. (2017). Integration of green economy concept into fossil fuels (production and consumption: Iran), Environmental Energy and Economic Research, 1(1), 1-14. 

Atrkar, R. S. (2007). Export linkage to economic growth: evidence from Iran. International Journal of Development Issues; 6(1), 38-49.

Aye, G. C., and Edoja, P. E. (2017). Effect of economic growth on CO2 emission in developing countries: Evidence from a dynamic panel threshold model. Cogent Economics & Finance, 5(1), 1-22. 

Baboukardos, D. (2017). Market valuation of greenhouse gas emissions under a mandatory reporting regime: Evidence from the UK. Accounting Forum; 41(3), 221-33.

Choi, B., and Luo, L. (2017). Does the market value greenhouse gas emissions? Evidence from multi-country firm data. University of Newcastle; 68, 1-49.

 Clark, S. G. (2011). College and University Environmental Programs as a Policy Problem, Environmental Management. 23(5), 25-31.

Degraeuwe, B., Thunis, F., Clappier, A., Weiss, M., Lefebvre, W., Janssen, S., and Vranckx, S. (2016). Impact of passenger car NOx emissions and NO2 fractions on urban NO2 pollution – Scenario analysis for the city of Antwerp, Belgium. Atmospheric Environment; 126, 218-24.

Dianati, D. Z., and Khodakarami, E. (2017). The Effect of environmental news on stock price of the companies accepted in Tehran stock exchange. Journal of investment knowledge; 23, 189-212. (in Persian).

Farhadi, E. (2010). Iran and security of energy. Strategic research center of Iranian expediency discernment council of the system. (in Persian).

Hsiao, T. P., and Chung, M. T. (2010). CO2 emissions, energy consumption and economic growth in BRIC countries. Energy Policy, 38(12), 50-60.

IPCC. (2006). Guidelines for National Greenhouse Gas Inventories. General Guidance and Reporting. Institute for Global Environmental Strategies (IGES).

Jian, J., Fan, X., He, P., Xiong, H., and Shen, H. (2019). The Effects of Energy Consumption, Economic Growth and Financial Development on CO2 Emissions in China: A VECM Approach. Sustainability, 11(18), 1-16. 

Kandananond, K. (2017). The greenhouse gas accounting of a public organization: the case of a public university in Thailand. 4thInternational Conference on Power and Energy Systems Engineering; 25-29. Berlin, Germany.

Lotfalipour, M. R., Falahi, M. A., and Ashena, M. (2010). Economic growth, CO2 emissions, and fossil fuels consumption in Iran. Energy, 35(12), 5115-20.

Mojaver, F.(2009). Sources of economic growth and stagnation in Iran. The Journal of International Trade & Economic Development, 18(2), 275-95.

Omri, A. (2013). CO2 emissions, energy consumption and economic growth nexus in MENA countries: Evidence from simultaneous equations models. Energy Economics, 40, 657–664.

Pesaran, H. (1997). The role of econometric theory in modeling the long run. Econometrics Journal, 107(440), 178–91.

Pesaran, H., Shin, Y., and Smith, R. (2001). Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16(3), 289–326.

Robinson, J., Berkhout, T., and Campbell, A. (2011). The universities as an agent of change for sustainability. From www.horizons.gc.ca.

Saidi, K., and  Hammami, S. (2015). The impact of CO2 emissions and economic growth on energy consumption in 58 countries. Energy Reports, 1, 62-70.

Salehi, S., and Pazookinejad, Z. (2016). Sociological analysis of sustainable lifestyle among students. Iranian higher education; 8(1), 92-106. (In Persian).

Shao, Y. (2018). Does FDI affect carbon intensity? New evidence from dynamic panel analysis. International Journal of Climate Change Strategies and Management, 10(1), 27-42. 

Sullivan, R., and Gouldson, A. (2012). Does voluntary carbon reporting meet investors’ needs?. Journal of Cleaner Production, 36, 60–67.

Uddin, S., Sjo, B., and Shahbaz, M. (2013). The causal nexus between financial development and economic growth in Kenya. Econ Model, 35,701–7.

World Bank (2017). World Development Indicators. Washington DC, USA: The World Bank.

Yousefi, H., Abbaspour, A., and Seraj, H. (2019). Worldwide development of wind energy and co2 emission reduction, Environmental Energy and Economic Research, 3(1), 1-9. 

Zivot, E., and Andrews, D. (1992). Further evidence of great crash, the oil price shock and unit root hypothesis, Journal of Business and Economic Statistics, 10, 251-270.