Analysis of the Inter-relationship between Environmental Quality, per Capita Income and Public Health in Iran

As early as the economic growth became a desirable goal to achieve, the environmental degradation appeared as a topical issue by environmentalists. Economic growth has exacerbated environmental problems which in turn limit sustainable economic growth and development. In addition, economic growth and technological advances have had an opposite effect on human health. Considering that Iran is a developing country and pursues sustainable economic growth, discussions on environmental degradation and public health should be of prime importance. The purpose of this study is, therefore, to investigate the inter-relationship between environmental quality, per capita income and public health in Iran during 1368-1393 using a simultaneous equation system and the 3SLS method. The results of the research indicate that the health at the level of 99% has a positive and significant effect on per capita income. If life expectancy increases by one percent, then per capita income will increase by 2/374 percent. The data used in this study could not provide sufficient evidence for the negative impact of environmental pollution on public health. The results also show that the per capita income coefficient is positive but the square of per capita income is negative. As a results, the findings confirm the existence of an inverted U-shaped relation between per capita income and the environmental pollution.