Impact of Environmental Policies in Value-Added of Transportation Sector

Subject Areas : Labor and Demographic Economics

mirhosein  mosavi ¹ (استادیار اقتصاد دانشگاه الزهرا)
ghader  safarzadeh ² (کارشناس ارشد اقتصاد محیط زیست)

Received: 2013-10-26 Accepted : 2014-02-26 Published : 2014-03-01

Keywords: Q53, R48, H23, Q52,

Abstract :

Transportation is one of the most polluting divisions of economical interest, though it has various important negative effects on the national economy. Thus, environmental considerations in this field should be accounted for by high priority. In this work, by using different pollution parameters in transportation, consumption and production divisions, the effects of shadow price of environmental pollutants resulting from combustion of fuels on value added growth will be investigated through structural time series model (STSM). Since, shadow price of the environmental pollutant must be extracted initially; the instantaneous frontier pattern is used. Hence, after the evaluation of shadow prices in the transportation field, total prices for CO2, NOx and SO2 are calculated by assuming the individual diffusion contributions from those of the total contributions. Finally, the effects of these totally calculated results on value added growth are investigated by considering other defining variables. The resulting coefficient of shadow price growth by the value of -0.25 indicates inverse relation for this price between the transportation and value added growth.

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