Environmental pollution and economic growth elasticities of maritime and air transportations in Iran

Abstract

Purpose The purpose of this paper is to examine the effects of maritime and air transportation on the environment and economy of Iran. The authors specify two dynamic models of the environmental pollution and the economic growth. Then, the authors estimate the environmental and economic elasticities of maritime and air transportation in short run and long run in Iran during 1978–2012.Design/methodology/approach The authors estimate the environmental and economic elasticities of maritime elasticities in short and long run, using simultaneous equations system.Findings The findings indicate that the short- and long-run environmental pollution elasticities of maritime transportation are higher than those of the air ones. In addition, the economic growth elasticities are greater in the air transportation compared to maritime one. As a result, the maritime transportation is more pollutant and less productive in Iran in comparison with the air transportation.Originality/value The policymakers are advised to improve the infrastructure of maritime transportation from both the environmental and economic point of views. Consequently, the air transportation is considered as a cleaner and more beneficial transportation mode in Iran, where geographical position limits the maritime transport as a widespread transportation mode.