خلاصة:
this study aims to measure how much the industrial sector suppresses the development process to be sustainable in Iran. We employ a quadratic-log form of regression model to test the Industrial Environmental Kuznets Hypothesis. In addition, we use a Vector Auto-Regressive model to estimate the nexus among the industrial growth, income inequality, environmental pollution, and energy consumption in Iran during 1971 and 2014. The results confirm the Industrial Environmental Kuznets Hypothesis. Moreover, they show that all the three variables present the same response to the shock in the industrial growth since all the responses are increasing. It provides preponderance of evidence for the incompatibility of industrial growth with social, environmental, and resource development in Iran. This sector should be modified, improved, and reconstructed to pave the way for harmonization among the quadruple layers of sustainable development including industrial growth, environmental quality, social satisfaction, and optimal usage of resources. The policy-makers are advised to consider the sustainability properties in their development strategies as the development process evolves comprehensively.
ملخص الجهاز:
According to Figure 1, the sustainable development is considered as a quadruple-layer of resources conservation, environmental stewardship, economic growth, and social inclusion, ignorance of which leading to inefficiency, non-viability, unbearableness, , and inequity in the development process (World Bank1; Ward and Dubos, 1983; Erzurumlu and Erzurumlu, 2015).
The industrial growth can be a threat to the social equality in Iran, based on the Kuzents Hypothesis as the more economy grows, the more income inequality grows in the developing countries (Kaldor, 1966, 1967; Szirmai and Verspagen, 2015.
In addition to this hypothesis testing, we estimate the relationship among the environmental pollution, income inequality, energy consumption, and industrial growth in Iran and employed the vector autoregressive model and Impulse response function to investigate the effects of industrial growth shocks on the other variable.
4. 4 VAR Model and Impulse Response Function The Vector Auto-Regression (VAR) is employed to estimate the causal relationships among the proxy of industrial growth (industrial products) and the proxies of sustainable development (income equality, environmental quality, and energy demand).
Therefore, the industrial growth in Iran is inconsistent with the elements of sustainable development such as the efficiency in energy consumption, degradation in environmental pollution, and equality in income distribution.
In addition, we use a Vector Auto-Regressive model to estimate the nexus among the industrial growth, income inequality, environmental pollution, and energy consumption in Iran during 1971-2014.
In addition, we use a Vector Auto-Regressive model to estimate the nexus among the industrial growth, income inequality, environmental pollution, and energy consumption in Iran during 1971-2014.