Impulsive Effects of Sustainable Development on Carbon Dioxide Emissions in Iran with an Emphasis on Economic Globalization: A Structural Approach
Keywords:
structural vector autoregression, institutional quality , economic globalization, carbon dioxide emissions , Sustainable developmentAbstract
Objective: This study aims to examine the impulsive effects of sustainable development on carbon dioxide emissions in Iran, emphasizing the role of economic globalization and institutional quality.
Methodology: The study is applied in purpose and descriptive–analytical in nature, employing a post-event research design. Iran constitutes the statistical sample, and annual data covering the period 1991–2024 were analyzed. A Structural Vector Autoregression (SVAR) model was estimated using EViews software to capture the dynamic interactions among variables. Phillips–Perron unit root tests were conducted to assess stationarity, followed by Johansen cointegration tests to identify long-run equilibrium relationships. Key variables included carbon dioxide emissions, sustainable development, economic globalization (trade), institutional quality, financial development, capital formation, labor participation, and money supply.
Findings: The SVAR estimation results indicate that shocks originating from sustainable development exert a statistically significant negative effect on carbon dioxide emissions. In addition, shocks related to economic globalization show a significant long-run impact on environmental pollution. The structural coefficients are statistically significant, and impulse response functions confirm that the effects of shocks diminish over time.
Conclusion: The results suggest that strengthening sustainable development, particularly in conjunction with trade openness and improved institutional quality, can play a crucial role in reducing carbon dioxide emissions in Iran.
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Copyright (c) 2025 Minasadat Delbari, Khashayar Seyed Shokri, Marjan Damankeshideh, Shahriar Nessabian (Author)
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