Industrialization, Electricity Consumption and Co2 Emissions in Iran

This paper investigates the short term and long term relation between Co^sub 2^ emissions, electricity consumption and industrialization in case of Iran over the period 1980-2011. To estimate this relationship, the Granger Causality Test, Johansen cointegration test and Vector Error Correction Model are applied. Granger Causality analysis indicates that in short-run there is a bilateral causal relationship between Co^sub 2^ emissions and electricity consumption, and a bilateral causal relationship between Co^sub 2^ emissions and industry value added. But Granger Causality analysis didn't show any causal relationship between the industry value added and electricity consumption variables. The effects of the electricity consumption and industrialization on Co^sub 2^ emissions is positive in long-term.