Impact of trade liberalization of wood industry on environmental quality in Iran in relation to wood business partners (Case study: Carbon dioxide emission)

Document Type : Scientific article

Authors

1 M.Sc. Forestry, Faculty of Agriculture and Natural Resources, Lorestan University, Khoram Abad, Iran

2 Assistant Prof., Department of Forestry, Faculty of Agriculture and Natural Resources, Lorestan University, Khoram Abad, Iran

3 Assistant Prof., Department of Forestry, Faculty of Agricultural and Natural Resources, Lorestan University, Khoram Abad, Iran

4 Assistant Prof, Faculty of Administrative Sciences and Economic, Shahid Ashrafi Esfahani University, Esfahan, Iran

Abstract

Today, concern about environmental degradation and conservation is a priority. In this regard, the impact of trade on the environment is an important and growing issue in current politics. International trade affects the quality of the environment with respect to the three dimensions of scale, composition and technology. The carbon dioxide emission index is used to demonstrate environmental quality. The purpose of this study was to investigate the effects of the liberalization of the wood industry on Iran's environmental quality in relation to the 16 main wood trade partners within 1995-2015. In this study, the data panel method and the Stata software were used to estimate the model. The results of the model showed that the effect of the scale of 0.08 units and the effect of the combination of 0.427 units were overcome by the technical effect. Also, the results showed that due to the liberalization of the wood industry of Iran in relation to its wood partners, the combination of the three mentioned factors amounting to 0.424 units would reduce the quality of the environment.

Keywords

References

- Adkins, L.C. and Hill, R.C., 2008. Using Stata for Principles of Econometrics. 3rd edition, Wiley, New York, 459p.
- Antweiler, W., Copeland, B.R. and Taylor, S.M., 2001. Is free trade good for the environment? The     American Economic Review, 91(4): 877-908.
- Asghari, M. and Mohammadi, M.H., 2012. Trade liberalization of various industrial sectors and its impact on Iran’s environmental quality. Journal of Economic Development Research, 2(8): 41-64 (In Persian).
- Cole, M.A. and Elliott, R.J., 2003. Determining the trade-environment composition effect, the role of capital, labor and environmental regulations. Journal of Environmental Economics and Management, 46(3): 363-383.
-Cadoret, I. and Tran, X., 2015. The direct trade-induced composition effect and its environmental outcomes in different continents. University of Rennes, Rennes, 18p.
- Chen, P.P. and Gupta, R., 2006. An investigation of openness and economic growth using panel estimation. University of Pretoria, Pretoria, 26p.
- Dinda, S., 2006. Globalization and environment: can pollution haven hypothesis alone explain the impact of globalization on environment? Munich Personal RePEc Archive, Paper No. 59111, 19p.
-Drukker, D.M., 2003. Testing for serial correlation in linear panel-data models. Stata Journal, 3(2):168-177.
- Fetahi-Vehapi, M., Sadiku, L. and Petkovski, M., 2015. Empirical analysis of the effects of trade openness on economic growth: an evidence for South East European countries. Proscenia Economics and Finance, 19: 17-26.
- Frankel, J. and Rose, A., 2002. An estimate of the effect of common currencies on trade and income. Journal of Economics, 117(2): 437-466.
- Greene, W., 2001. Estimating econometric models with fixed effects. Department of Economics, Stern School of Business, New York University, New York, 14p.
- Gujarati, D.N., 2003. Basic Econometrics. 4th edition, McGraw-Hill, New York, 1002p.
 - Jayanthakumaran, K. and Liu, Y., 2012. Openness and the Environmental Kuznets Curve: evidence from China. Economic Modelling, 29(3): 566-576.
- IPCC, 2005. Intergovernmental panel on climate change, special report on carbon dioxide capture and storage. Working Group III, 442p.
-  Levin, A., Lin, C.F. and Chu, C.S.J., 2002. Unit root tests in panel data: Asymptotic and finite-sample properties. Journal of Econometrics, 108(1): 1-24.
- Li, Y. and Hewitt, C.N., 2008. The effect of trade between China and the UK on national and global carbon dioxide emissions. Energy Policy, 36(6): 1907-1914.
 - Marin, G., 2010. Sector CO2 and SOx emissions efficiency and investment: homogeneous vs heterogeneous estimates using the Italian NAMEA. Munich Personal RePEc Archive, Paper No. 24077, 19p.
 - McAusland, C., 2010. Globalization’s direct and indirect effects on the environment. Proceedings of Global Forum on Transport and Environment in a Globalising World, Mexico, 10-12 Nov. 2008: 27p.
 -Perstemen, J.P., 1997. The effect of NAFTA expansion on US forest products. Journal of Forestry, 95(7): 26-32.
- Panahi, P., Pourhashemi, M. and Hassaninejad, M., 2011. Estimation of leaf biomass and leaf carbon sequestration of Pistacia atlantica in National Botanical Garden of Iran. Iranian Journal of Forest, 3(1): 1-12 (In Persian).
 - Shen, J., 2008. Trade liberalization and environmental degradation in China. Applied Economics, 40(8): 997-1004.
- Wooldridge, J.M., 2003. Cluster-sample methods in applied econometrics. The American Economic Review, 93(2): 133-138.
 - Zhu, S., Buongiorno, J. and Brooks, D.J., 2002. Global effects of accelerated tariff liberalization in the forest products sector to 2010. US Department of Agriculture, Forest Service, Pacific Northwest Research Station, Research Paper PNW-RP-534, Oregon, Portland, 51p.
Iranian Journal of Forest and Poplar Research
Volume 25, Issue 4 - Serial Number 70
January 2019
Pages 687-696

Files

Share

How to cite

Statistics