Environmental Regulation and Its impact on Trade and Transfer of Non-exhaustible Energy Technology between Iran and G7 Countries.

With the decline in the world consumption of fossil fuel, there has been a high tendency to use more of non-exhaustible energy sources, for having comparatively much less pollutions. Despite having a high potentiality in production of non-exhaustible energy sources, less efforts have been made to utilize these resources. In fact very small proportion of its energy consumption  came fromnon- exhaustible sources. In this paper we try to explain the role
of environmental regulation on trade of non-exhaustible energy technology between Iran and G7 countries basing our study on two hypothetical assumption of Pollution Shelter and Porter, s View. In fact our purpose is to examine the
main determinants of exports of non-exhaustible energy technology. Our results show that hard and serious environmental regulation provide a positive incentive for investment on technical know-how, tools and equipment. This is in fact an indirect source of comparative advantage in export of such high technical tools and environmental friendly equipment.