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Direct and indirect effects of corruption on pollution in Iran; By ARDL approach

Document Type : Research Paper

Authors

1 Ph.D Student, Economics, Islamic Azad University of Isfahan (Khorasgan) Branch

2 Professor, Department of Economics, Islamic Azad University, Isfahan (Khorasgan) Branch

3 Associate Professor, Department of Economics, Islamic Azad University, Isfahan(Khorasgan) Branch

Abstract

 
Almost all human economic activities, directly or indirectly, affect the environment and ecological system. Corruption in economic activities is  caused by such factors as inadequate regulatory system, lack of respect for law, weak democracy, inequality of individuals against law, and lack of accountability on environmental issues. Because of the importance of corruption in environmental degradation, this study aimed to evaluate the direct and indirect effects of corruption on CO2 emissions as an indicator of pollution in the country. Therefore, annual data 1984-2015 for Iran and using Auto Regressive Distributed Lag (ARDL). The results of estimating direct effects model showed a positive and significant relationship corruption with CO2 emissions in the long run. And in indirect effects model corruption relationship with per capita income (as the intermediary channel) is negative and significant. Prominent issue in the study is high share direct effects of corruption on pollution compared to indirect effects. Therefore, it is recommended that authorities have more supervisory in control corruption.

Keywords

References
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Quarterly Journal of Quantitative Economics
Volume 15, Issue 2 - Serial Number 57
Vol. 15, No. 2, Summer 2018
September 2018
Pages 83-110
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History
  • Receive Date: 22 July 2017
  • Revise Date: 01 November 2017
  • Accept Date: 30 December 2017
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