Studying the Effect of Economic Growth on Environmental Quality in Developing Countries (GMM Method) | ||
| پژوهشهای رشد و توسعه اقتصادی | ||
| Article 7, Volume 15, Issue 58, April 2025, Pages 172-157 PDF (617.83 K) | ||
| Document Type: ORIGINAL ARTICLE | ||
| DOI: 10.30473/egdr.2025.73848.6968 | ||
| Author | ||
| Ali. Mohamadipour.* | ||
| Assistant Professor, Department of Economy, Payame Noor University & Iranian Association for Energy Economies, Tehran, Iran. | ||
| Abstract | ||
| In recent decades, developing countries, due to severe backwardness and haste to achieve higher economic growth and development, have faced wider and more dangerous environmental crises and problems. In this study, the effect of economic growth on environmental quality in selected developing countries is examined using the GMM method over the period 2010 to 2024. The results showed that economic growth has a positive effect on trade openness and carbon dioxide emissions have a negative effect on foreign trade. On the other hand, the variables of economic growth and trade openness have a positive and significant effect on carbon dioxide emissions. Therefore, appropriate policies for environmental protection along with economic growth policies and trade expansion can lead to improvement in environmental quality in addition to economic growth. Given the confirmation of the Pollution Haven Hypothesis (PHH) in the present study, the key regulatory and policy-making role of governments in developing countries is very important in maintaining the public health of the population and achieving the global sustainable development goals. Also, given the unfavorable economic conditions in Iran, it unfortunately seems that economic policymakers in this country not only completely prioritize achieving higher economic growth over managing environmental pollutants and protecting natural resources; they have also completely forgotten the imposition of supplementary regulations (incentives, carbon taxes, etc.) on the entry of foreign capital and even the government's supervisory and policy-making function in implementing a green economy. | ||
| Keywords | ||
| Economic Growth; Carbon Dioxide Emissions; Dynamic Panel; Generalized Method of Moments (GMM) Method; Pollution Haven Hypothesis (PHH) | ||
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