Document Type : Original Article
Authors
1
Professor of Economics, Economic Development and Planning Group, Faculty of Economics and management, University of Tabriz, Tabriz, Iran
2
Department of Economics, Faculty of Economics and Management, University of Tabriz
10.22080/jeem.2025.28418.1025
Abstract
In recent decades, achieving economic growth in most countries of the world has led to environmental problems such as global warming, deforestation, and biodiversity loss. For this reason, policymakers and researchers are seeking to achieve sustainable development and simultaneously focus on economic growth and environmental quality. Accordingly, given the global importance of environmental protection on the one hand, and the prominent role of informal economy in environmental degradation, especially in developing countries, on the other hand, this study aims to investigate the relationship between shadow economy and carbon dioxide emissions with an emphasis on the role of energy consumption and economic growth in Iran during 1980-2023 applying ARDL method. The long-term estimation results indicate that shadow economy, energy consumption, and economic growth increase carbon dioxide emissions in Iran. Also, based on the short-term estimation results, population density and industrialization also have positive and significant effects on carbon dioxide emissions. In addition, the ECM coefficient shows that about 95% of the short-term deviation is adjusted each period. Based on the results, it is suggested that policymakers adopt policies to facilitate economic activities formalization, increase energy efficiency, focus on renewable energy production, and integrate economic growth policies with environmental protection policies.
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