Investigating the Validity of Pollution Haven Hypothesis in the Timber Industry of Iran and Its Trade Partners

Increasing the volume of trade leads to lower environmental quality and in fact more CO2 emissions. In this regard, the effects of globalization and trade liberalization on the timber industry have led to economic growth. According to the subject literature following commercial liberalization, the transfer of polluting industries from countries with severe environmental policies to countries with mild environmental policies is increasing. The purpose of this study was to investigate the asylum hypothesis of wood industry pollution.

using panel data and fixed effects approach in Iran and 16 wooden trading partners, during the period 1995-2015.

In this study, panel data and software Stata were used to estimate model. The interactions of trade and per capita income have a positive coefficient of 6.50.

Our results support the pollution haven hypothesis.