The Granger Causality among Tourist Arrival, Economic Growth and CO2 Emissions in Iran

Soheila Khoshnevis Yazdi, Bahman Khanalizadeh, Bahram Shakouri,

Article history:
Received 25 June 2014
Received in revised form
8 July 2014
Accepted 14 September 2014
Available online 10 October 2014
CO2 emissions, Economic growth,
Energy Consumption, Iran, Trade,


This paper explores the relationship between carbon dioxide (CO2) emissions, economic growth, energy consumption, the number of tourist arrivals and trade in Iran spanning the period 1975-2011. The unit root and cointegration tests show that the long-run relationship and the short-run relationship between CO2 emissions and its determinants. The empirical findings reveal the presence of a long-run relationship across the variables under investigation. Furthermore, short-run dynamics show a bidirectional causality running between GDP, energy consumption, the number of tourist arrivals and CO2 emissions. In addition, there is a unidirectional short-run causal link without feedback effects from economic growth to trade and as well as a unidirectional causality running from the number of tourist trade to arrivals. In the long-run, there is sign of bidirectional causality between emissions, renewable energy consumption and the number of tourist arrivals. Long-run estimates highlight that the trade contribute to the reduction of emissions, while both real GDP, and energy consumption the number of tourist arrivals contribute to the increase of emissions.

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