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Impact of Natural Resource Dependency and Economic Globalization on Environmental Sustainability in Iran

Strategic Insights

— 1 min read

Research from Lorestan University explores the connection between economic growth, natural resource dependency, and environmental sustainability in Iran, shedding light on the N-shaped Environmental Kuznets Curve (EKC). The study utilized time series data from 1990 to 2021, examining the impact of economic growth, natural resource dependency, and economic globalization on environmental degradation indicators, including CO2 emissions and ecological footprint.

Key Takeaways:

  • The study confirmed the hypothesis of an N-shaped EKC, where economic growth, its square, and cube have a significant and positive, negative, and positive impact on environmental degradation indicators, respectively.
  • A one percent increase in the share of natural resources from GDP leads to a 0.18 percent increase in CO2 emissions and a 0.16 percent increase in ecological footprints.
  • A one percent increase in the KOF globalization index leads to a 0.49 percent decrease in CO2 emissions and a 0.54 percent decrease in ecological footprints.
  • The study suggests that higher economic growth rates in the near future may lead to environmental degradation by crossing the second turning point of the N-shaped EKC.
  • The government should adopt policies to preserve and prevent the excessive exploitation of natural resources and allocate a portion of the revenues from the sale of natural resources to investment in environmentally friendly technologies.
  • Economic globalization may reduce environmental demand, and moving towards an open economy can help improve environmental quality in Iran.

Statistics:

  • Time period: 1990-2021
  • Variables: GDP per capita, share of natural resource rent from GDP, KOF globalization index, CO2 emissions, ecological footprint
  • Data sources: World Development Indicators, KOF Economic Institute, Global Footprint Network
  • Methodology: Johansen-Juselius's cointegration test, Vector Error Correction Model (VECM) estimation
  • Error correction coefficient: -0.22 to -0.25
  • Short-term effect: only economic globalization had a significant effect on environmental degradation indicators

Sources:

  • The Impact of Natural Resource Dependency and Economic Globalization on Environmental Sustainability in IRAN within the framework of the N-shaped Environmental Kuznets Curve. mhyt zyst w tws h frabkhshy, 2025,10(87):60-77.
  • Research Center for Environment and Sustainable Development (RCESD)
  • https://doi-org.sdpl.idm.oclc.org/10.22034/envj.2025.444793.1346
  • NewsRx LLC
  • Study Data from Lorestan University Update Knowledge of Sustainability Research (The Impact of Natural Resource Dependency and Economic Globalization on Environmental Sustainability in IRAN within the framework of the N-shaped Environmental ...). Global Warming Focus. August 25, 2025; p 709.

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