Energy Consumption and Economic Growth Effects on Environment in Iran (1967-2004)

During recent decades, environment has experienced a great loss as a result of some factors such as population growth, economic growth, energy consumption and industrial activities. This paper examines the relationship of energy consumption, economic growth and environment in Iran by using cointegration methods for the period of 1967-2004. The research found that the increase of energy intensity by one percent increases CO2 per capita and environmental pollution by 0.92 percent. Also, one percent increase of GDP per capita increases CO2 per capita by 1.31 percent.