Environmental Pollution and Economic Growth based on the Theory of Environmental Kuznets Curve (EKC) in Iran's Provinces (1997-2017)

Despite the fact that economic growth provides the basis for the progress of societies, it increases pollution and, as a result, destroys the environment and reduces the welfare of societies. On the other hand, preserving and protecting the environment is one of the most important pillars of achieving sustainable development. Regardless of the environmental issue, natural and human resources will be depleted and will have dire consequences on the planet and even in human societies. The environment is considered as a factor, which affects and is affected by both economic growth and sustainable development. In developing countries, overproduction and economic growth generally lead to environmental degradation. In this study, the effects of reverse U-shaped and N-shaped curve of GDP on the surface variable with power two and three on the pollutant’s emission volume is investigated. Also, nitrogen oxide, carbon monoxide, carbon dioxide, sulfur dioxide, sulfur trioxide using long-term panel econometric methods, including; panel unit root test, Kao co-integration test, FMOLS and DOLS for 30 provinces of the country over 1997-2017 were considered. As a result, estimates suggest that the environmental Kuznets assumptions are the same for all five pollutants, and as GDP increases, pollution first increases, then begins to decline after reaching the peak point, and finally continues to rise by increasing reproduction. In other words, the results of the estimates indicate the confirmation of the N-shaped relationship between the provinces of Iran.