Natural disasters, eco-innovation, and GDP per capita in Iran

Subject Areas : Agricultural and Natural Resource Economics

Vahid Azizi ¹ , Bakhtiar Javaheri ² , Fateh Habibi ³

1 - Master of Theoretical Economics, Department of Economics, Faculty of Humanities and Social Sciences, University of Kurdistan, Sanandaj, Iran. [e-mail]
2 - Associate Professor, Department of Economics, Faculty of Humanities and Social Sciences, University of Kurdistan, Sanandaj, Iran. (Corresponding Author). [e-mail]
3 - Associate Professor, Department of Economics, Faculty of Humanities and Social Sciences, University of Kurdistan, Sanandaj, Iran. [e-mail]

Received: 2024-09-22 Accepted : 2024-11-12 Published : 2024-11-19

Keywords: GDP per capita, Eco-innovation, Natural Disasters, Iran JEL Classification: Q54, Q55, O40, F51,

Abstract :

Natural disasters are unpredictable events that disrupt the economic system of affected regions by impairing production, consumption, and employment, leading to immediate negative impacts on national output. In this context, eco-innovation is proposed as a key solution to mitigate the losses from natural disasters and enhance societal resilience. Eco-innovations can reduce disaster risks and improve overall quality of life. The aim of this study is to examine the role of eco-innovation in the relationship between natural disasters and GDP per capita in Iran. To achieve this, the Dynamic Ordinary Least Squares (DOLS) estimation approach was employed to analyze data from 1980 to 2022. The results indicate that eco-innovation positively affects GDP per capita, while natural disasters and the interaction variable (disasters and innovation) have a negative impact. Additionally, the findings suggest that innovation helps reduce the severity of the impact of disasters on GDP per capita. Furthermore, the study reveals that economic sanctions negatively affect GDP per capita, while factors such as labor, physical capital, and trade liberalization have a positive effect.

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