Interactions of Transportation, Economic Growth and CO2 Emissions in Iran

The purpose of this paper is to investigate the interrelationships between transportation (rail and air), economic growth and CO2 emissions in Iran during the period 1983-2019 using time series data and simultaneous equations system. The findings show a positive correlation between transport (rail and air) and economic growth, as well as between transport (rail and air) and CO2 emissions. Another finding of this study is that economic growth has a significant effect on increasing CO2 emissions, however increasing CO2 emissions has no effect on economic growth. Based on the results, the creation and development of infrastructure related to the type of transportation in order to improve the economic growth of the country is proposed.