Machine summary:
"So, for ranking industrial activities in Iran in addition to variables such as employment, value added and profitability, environmental pollution indicators will be considered.
Therefore if traditional indices such as employment, value added and profitability are identified as a basis for determination of comparative advantage, the industries are known advantageous that their products are consumed at the level which is socially inefficient.
Because these values are derived from inefficient consumption by users, therefore, ranking industries based on traditional indicators of comparative advantage is not true and sustainable development indicators such as indicators of air pollution should also be considered.
The result of study showed that air pollution is a positive function of energy consumption, industrial activity and physical capital intensity and also is a negative function of labor productivity, fuel price and human skill intensity.
Empirical Results As mentioned before, the aim of this study is Ranking Iranian production activities based on combination of traditional comparative advantage and environmental indices.
Then in stage (2), indicators of sustainable development, especially pollutions from carbon dioxide gas, carbon monoxide, nitrogen oxides, sulfur oxides, hydrocarbons and Suspended particulate Materials(SPM) were added into the analysis and industries were ranked again based on traditional comparative advantage indices and indices of air pollution.
Comparing the two stages shows that manufacture of other non-metallic mineral products which is ranked first in the stage (1) of this study and in terms of employment, value added and profitability is at the highest grade, but when industries are ranked according to air pollution indices, this industry has the lowest rank."