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 random events that disrupt the functioning of the economic system of the affected regions by disrupting production, consumption, and employment factors, and leave immediate negative effects on national production. In this context, Eco-innovation is proposed as an effective solution to reduce losses from natural disasters and increase the resilience of societies. These innovations can reduce disaster risks, and improve the quality of life. Therefore, the aim of the present study is to investigate the role of Eco-innovation in the relationship between natural disasters and GDP per capita in Iran. For this purpose, Dynamic ordinary least squares (DOLS) estimation approach was used to investigate the period from 1980 to 2022. The results showed that Eco-innovation has a positive effect on GDP per capita. While natural disasters and the interaction variable (disasters and innovation) have a negative effect on GDP per capitain Iran. Also, the findings indicate that innovation can reduce the severity of the impact of disasters on GDP per capita. Other results also show that economic sanctions have a negative effect and factors such as labor, physical capital, and trade liberalization have a positive effect on GDP per capita.

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