Effects of Industrial Structure and Energy Productivity on CO2 Emissions in Iranian Provinces

Articles in Press

Document Type : Research Paper

Authors

1 Faculty of Economics and Management, Khorramshahr University of Marine Science and Technology, Khorramshahr, Iran

2 Department of Economics and Maritime Insurance, Khorramshahr University of Marine Science and Technology, Khorramshahr, Iran

Abstract

Climate change is currently the most serious threat to sustainable development. Greenhouse gas emissions are the primary cause of climate change in both developed and developing countries. Energy consumption is a major contributor to rising CO2 emissions. Because developing countries are less equipped to address climate change effectively, they are more severely influenced by its effects. Energy consumption has a profound impact on the economic development of societies, and the energy sector is the cornerstone of industrialization, globalization, and market expansion. However, technological advancements, urbanization, and industrialization, particularly in developing countries, have resulted in increased use of fossil fuels. In this regard, industries are the primary consumers of energy. This study employed a spatial econometric approach to investigate the direct and indirect effects of industrial structure and energy Productivity on CO2 emissions in Iranian provinces during the 2011-2020 period. The findings indicated that the industrial structure had a significant and positive impact on CO2 emissions, while its spatial spillover exhibited a significant and negative effect. Additionally, the results revealed that energy productivity had a negative and significant impact on CO2 emissions, while its spatial spillover had a negative but insignificant effect. In addition, research and development budgets exhibited positive and significant effects on CO2 emissions, and the effects of its spatial spillover were negative and significant. Lastly, the results demonstrated the positive and significant effects of population on CO2 emissions, while its spatial spillover had negative and non-significant effects.

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Iranian Economic Review

Articles in Press, Accepted Manuscript
Available Online from 02 October 2024

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