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.

References:

ح- حسن‌زاده محمودآباد، محمد، حاضری، هاتف و دوازده‌امامی، زهرا (1401). اثر نوآوری بر رشد اقتصادی در کشورهای توسعه‌یافته و درحال‌توسعه. نوآوری و ارزش‌آفرینی، 11(22)، 1- 10 Dor: 20.1001.1.27170454.1401.11.22.2.6
- روشن‌رو، محمد، ابراهیمی، مهرزاد و زارع، هاشم (1402). آثار تحریم های اقتصادی بر اقتصاد ایران با تأکید بر سرمایه انسانی. مدلسازی اقتصادی، 17(64)، 71-96.
- شاکری، عباس، زمانی، رضا و ورتابیان کاشانی، هادی (1401). تأثیر تنوع و ماهیت سبد صادرات غیرنفتی بر رشد اقتصادی ایران. پژوهش‌های رشد و توسعه اقتصادی، 12(46)، 34-15. DOI: 10.30473/egdr.2020.52276.5753
- صابری‌زاده، مهدی و دقیقی اصلی، علیرضا (1398). بررسی اثرات بلایای طبیعی (سیل) بر ارزش‌افزوده بخش حمل‌ونقل جاده‌ای. پژوهشنامه حمل‌ونقل، 16(1)، 346 – 337. DOI: 20. 001.1.17353459.1398.16.1.24.4
- صادقی، حسین و امامقلی‌پور، سارا (1387). مطالعة تأثیر بلایای طبیعی بر تولید ناخالص داخلی غیرنفتی در ایران. تحقیقات اقتصادی، 43(2)، 136 – 115. DORL: 20.1001.1.00398969.1387.43.2.6.5
- عباسی‌نژاد، حسین، گودرزی فراهانی، یزدان و قیاسی، محمد حسین (1393). تأثیر حمایت از حقوق مالکیت فکری و حق اختراع بر رشد اقتصادی ایران. پژوهش‌های اقتصادی (رشد و توسعه پايدار)، ۱۴(۱)، ۲۷-۵۸.
DORL: 20.1001.1.17356768.1393.14.1.10.9
- فدائی، مهدی و درخشان، مرتضی (1394). تحلیل اثرات کوتاه‌مدت و بلندمدت تحریم‌های اقتصادی بر رشد اقتصادی در ایران. پژوهش‌های رشد و توسعه اقتصادی، 5(18)، 132-113.
- قریشوندی ابراک، اکرم، قویدل دوستکویی، صالح و صوفی مجیدپور، مسعود. (1403). فراگیری مالی و رشد اقتصادی؛ تحلیل بین کشوری. مدلسازی اقتصادی، 18(65)، 1-20.
- محمدزاده، پرویز، خان گلدی زاده، سمانه، و کمانگر، شهرام (1399). تأثیر نوآوری و کارآفرینی بر رشد اقتصادی: یک مطالعه بین کشوری. پژوهش‌های اقتصادی ایران، 25(82)، 121-148.
- Abbasinejad, H., Gudarzi Farahani, Y., & Hossein Ghiassi, M. (2014). The effect of protection of intellectual
- property and patent on Iran’s economic growth. The Economic Research, 14(1), 27-58. DORL:
20.1001.1.17356768.1393.14.1.10.9. (In Persian).
- Abdalzaher, M. S., Samy, L., & Muta, O. (2019). Non‐zero‐sum game‐based trust model to enhance wireless
- sensor networks security for IoT applications. IET Wireless Sensor Systems, 9(4), 218-226.
- Abdalzaher, M. S., Salim, M. M., Elsayed, H. A., & Fouda, M. M. (2022). Machine learning benchmarking for secured iot smart systems. In 2022 IEEE International Conference on Internet of Things and Intelligence Systems (IoTaIS) (pp. 50-56). IEEE.
- Albala-Bertrand, J. M. (1993). Natural disaster situations and growth: A macroeconomic model for sudden disaster impacts. World Development, 21(9), 1417-1434.
- Alhassan, A., Sabzehmeidani, A. S., Taha, A. I., & Haseki, M. I. (2023). Sanctions and economic growth: Do sanction diversity and level of development matter?. Heliyon, 9(9), 1-12. Doi: 10.1016/j.heliyon.2023.e19571
- Amara, D. B., & Qiao, J. (2023). From economic growth to inclusive green growth: How do carbon emissions, eco-innovation and international collaboration develop economic growth and tackle climate change?. Journal of Cleaner Production, 425, 138986, 1- 14. Doi: 10.1016/j.jclepro.2023.138986
- Awadallah, S., Moure, D., & Torres-González, P. (2019). An internet of things (IoT) application on volcano monitoring. Sensors, 19(21), 4651.
- Baig, N., Khan, S., Gilal, N. G., & Qayyum, A. (2018). Do natural disasters cause economic growth? An ARDL bound testing approach. Studies in Business and Economics, 13(1), 5-20.
- Benali, N., Abdelkafi, I., & Feki, R. (2018). Natural-disaster shocks and government's behavior: Evidence from middle-income countries. International Journal of Disaster Risk Reduction, 27, 1-6. Doi: 10.1016/j.ijdrr.2016.12.014.
- Blackett, M. (2017). An overview of infrared remote sensing of volcanic activity. Journal of Imaging, 3(2).
- Botzen, W. W., Deschenes, O., & Sanders, M. (2019). The economic impacts of natural disasters: A review of models and empirical studies. Review of Environmental Economics and Policy, 13(2), 167–188, Doi: 10.1093/reep/rez004.
- Cai, W. G., & Zhou, X. L. (2014). On the drivers of eco-innovation: empirical evidence from China. Journal of Cleaner Production, 79, 239-248.
- Cavallo, E., & Noy, I. (2011). Natural disasters and the economy—a survey. International Review of Environmental and Resource Economics, 5(1), 63-102. Doi: 10.1561/101.00000039
- Cavallo, E., Galiani, S., Noy, I., & Pantano, J. (2013). Catastrophic natural disasters and economic growth. Review of Economics and Statistics, 95(5), 1549-1561.
- Chhibber, A., & Laajaj, R. (2013). The Interlinkages between Natural Disasters and Economic Development, In D. Guha-Sapir & I. Santos (Eds.), The Economic Impacts of Natural Disasters, (pp. 28–56). New York, Oxford University Press.
- Cunado, J., & Ferreira, S. (2014). The macroeconomic impacts of natural disasters: the case of floods. Land Economics, 90(1), 149-168. doi: 10.3368/le.90.1.149.
- Dokas, I., Panagiotidis, M., Papadamou, S., & Spyromitros, E. (2023). Does innovation affect the impact of corruption on economic growth? International evidence. Economic Analysis and Policy, 77, 1030-1054. Doi: 10.1016/j.eap.2022.12.032.
- Dugoua, E., & Dumas, M. (2021). Green product innovation in industrial networks: A theoretical model. Journal of Environmental Economics and Management, 107, 102420.
- Elwekeil, M., Abdalzaher, M. S., & Seddik, K. (2019). Prolonging smart grid network lifetime through optimising number of sensor nodes and packet length. IET Communications, 13(16), 2478-2484
- Fadaee, M., & Derakhshan, M. (2015). Analysis of Short Run and Long Run Effects of Economic Sanctions on Economic Growth in Iran. Economic Growth and Development Research, 5(18), 113-132. (In Persian).
- Fomby, T., Ikeda, Y., & Loayza, N. V. (2013). The growth aftermath of natural disasters. Journal of applied econometrics, 28(3), 412-434.
- Ghoreyshvandi Abrak, A., Ghavidel Doostkoui, S., & Soufimajidpour, M. (2024). The impact of financial inclusion on economic growth: A cross-country analysis. Economic Modeling, 18(65), 1-20. (In Persian).
- Guo, J., Liu, H., Wu, X., Gu, J., Song, S., & Tang, Y. (2015). Natural disasters, economic growth and sustainable development in china―an empirical study using provincial panel data. Sustainability, 7(12), 16783-16800. doi:10.3390/su71215847
- Guoyou, Q., Saixing, Z., Chiming, T., Haitao, Y., & Hailiang, Z. (2013). Stakeholders' influences on corporate green innovation strategy: A case study of manufacturing firms in China. Corporate social responsibility and environmental management, 20(1), 1-14.
- Hallegatte, S., & Dumas, P. (2009). Can natural disasters have positive consequences? Investigating the role of embodied technical change. Ecological economics, 68(3), 777-786. DOI: 10.1016/j.ecolecon.2008.06.011
- Hallegatte, S., & Przyluski, V. (2010). The economics of natural disasters: concepts and methods. World Bank policy research working paper, (5507).
- Hassanzadeh Mahmoud Abad, M., Hazeri, H., & Davazdahemami, Z. (2022). The Impact of Innovation on Economic Growth in Developed and Developing Countries. Journal of Innovation and Value Creation, 11(22), 1- 10. dor: 20.1001.1.27170454.1401.11.22.2.6. (In Persian).
- Hordofa, T. T., Vu, H. M., Maneengam, A., Mughal, N., & Liying, S. (2023). Does eco-innovation and green investment limit the CO2 emissions in China?. Economic research-Ekonomska istraživanja, 36(1), 634-649.
- Idroes, G. M., Hardi, I., Nasir, M., Gunawan, E., Maulidar, P., & Maulana, A. R. R. (2023). Natural Disasters and Economic Growth in Indonesia. Ekonomikalia Journal of Economics, 1(1), 33–39. Doi: 10.60084/eje.v1i1.55
- Iranmanesh, S., Salehi, N., & abdolmajid Jalaee, S. (2021). Using the fuzzy logic approach to extract the index of economic sanctions in the Islamic Republic of Iran. MethodsX, 8, 101301. Doi: 10.1016/j.mex.2021.101301
- Joseph, I. L. (2022). The effect of natural disaster on economic growth: Evidence from a major earthquake in Haiti. World Development, 159, 106053. Doi: 10.1016/j.worlddev.2022.106053
- Khan, A., Chenggang, Y., Khan, G., & Muhammad, F. (2020). The dilemma of natural disasters: Impact on economy, fiscal position, and foreign direct investment alongside Belt and Road Initiative countries. Science of the Total Environment, 743, 140578. Doi: 10.1016/j.scitotenv.2020.140578
- Klomp, J., & Valckx, K. (2014). Natural disasters and economic growth: A meta-analysis. Global Environmental Change, 26, 183-195.
- Kreimer, A. (2001). Social and Economic Impacts of Natural Disasters. International Geology Review, 43(5), 401–405.
- Krichen, M., Abdalzaher, M. S., Elwekeil, M., & Fouda, M. M. (2024). Managing natural disasters: An analysis of technological advancements, opportunities, and challenges. Internet of Things and Cyber-Physical Systems, 4(2024), 99–109. Doi: 10.1016/j.iotcps.2023.09.002.
- Kumar, P., Sahu, N. C., & Kumar, S. (2021). Natural disasters and income inequality in South Asia: an FGLS panel analysis. Critical Perspectives on Emerging Economies: An International Assessment, 27-39. Doi: 10.1007/978-3-030-59781-8_3.
- Kunapatarawong, R., & Martínez-Ros, E. (2016). Towards green growth: how does green innovation affect employment?. Research policy, 45(6), 1218-1232.
- Kliesen, K. L., & Mill, J. S. (1994). The economics of natural disasters. The regional economist, 332.
- Loayza, N. V., Olaberria, E., Rigolini, J., & Christiaensen, L. (2012). Natural disasters and growth: Going beyond the averages. World Development, 40(7), 1317-1336.
- Mohammadzadeh, P., Khangaldizadeh, S., & Kamangar, S. (2020). The Impact of Innovation and Entrepreneurship on Economic Growth: An Intercountry Study. Iranian Journal of Economic Research, 25(82), 121-148. doi: 10.22054/ijer.2020.11912. (In Persian).
- Moustapha, M. A. M., & Yu, Q. (2020). Innovation effect through research and development on economic growth in 35 OECD countries. Journal on Innovation and Sustainability Risus, 11(4), 159-166. DOI: 10.23925/2179-3565.2020v11i4p159-166
- Munawar, H. S., Mojtahedi, M., Hammad, A. W., Kouzani, A., & Mahmud, M. P. (2022). Disruptive technologies as a solution for disaster risk management: A review. Science of the total environment, 806, 151351.
- Nam, H. J., & Ryu, D. (2024). Does trade openness promote economic growth in developing countries?. Journal of International Financial Markets, Institutions and Money, 93, 101985. Doi: 10.1016/j.intfin.2024.101985
- Neuenkirch, M., & Neumeier, F. (2015). The impact of UN and US economic sanctions on GDP growth. European Journal of Political Economy, 40(A), 110-125. Doi: 10.1016/j.ejpoleco.2015.09.001
- Nourmohammadi Shalkeh, M., & Fotourehchi, Z. (2023). The effect of natural disasters on economic growth with the moderating role of environmental degradation. International Journal of Sustainable Economy, 15(3), 292-305. Doi: 10.1504/IJSE.2023.131871.
- Noy, I., & Nualsri, A. (2011). Fiscal storms: public spending and revenues in the aftermath of natural disasters. Environment and Development Economics, 16(1), 113-128.
- Noy, I., & Vu, T. B. (2010). The economics of natural disasters in a developing country: the case of Vietnam. Journal of Asian Economics, 21(4), 345-354.
- Oliveira, V. H. D. (2019). Natural disasters and economic growth in Northeast Brazil: evidence from municipal economies of the Ceará State. Environment and Development Economics, 24(3), 271-293. DOI: 10.1017/S1355770X18000517
- Oštir, K., Veljanovski, T., Podobnikar, T., & Stančič, Z. (2003). Application of satellite remote sensing in natural hazard management: the Mount Mangart landslide case study. International Journal of Remote Sensing, 24(20), 3983-4002.
- Panwar, V., & Sen, S. (2019). Economic impact of natural disasters: An empirical re-examination. Margin: The Journal of Applied Economic Research, 13(1), 109-139. doi:10.1177/0973801018800087
- Raddatz, C. (2007). Are external shocks responsible for the instability of output in low-income countries?, Journal of Development Economics, 84(1), 155–187. Doi: 10.1016/j.jdeveco.2006.11.001
- Raddatz, C. E. (2009). The wrath of God: macroeconomic costs of natural disasters. World Bank policy research working paper, (5039). The World Bank, Development Research Group Macroeconomics and Growth Team.
- Rennings, K. (2000). Redefining innovation—eco-innovation research and the contribution from ecological economics. Ecological economics, 32(2), 319-332.
- Rowshanroo, M., Ebrahimi, M., Zare, H. (2024). The effect of economic sanctions on Iran's economy with an emphasis on human capital, .Economic Modeling, 17(64), 71-95. (In Persian).
- Saberizadeh, M., & Daghighi, A. R. (2019). Investigating the Effects of Natural Disasters (Floods) On the Value Added Of the Road Transport Sector. Journal of Transportation Research, 16(1), 337-346. DOI: 20.1001.1.17353459.1398.16.1.24.4. (In Persian).
- Sadeghi, H., & Emamgholipour, S. (2008). The Natural Disasters Effect on Non-oil GDP in IRAN. Journal of Economic Research, 43(2), 115-136. DORL: 20.1001.1.00398969.1387.43.2.6.5. (In Persian).
- Saikkonen, P. (1992). Estimation and testing of cointegrated systems by an autoregressive approximation. Econometric theory, 8(1), 1-27.
- Sarkar, A. N. (2013). Promoting eco-innovations to leverage sustainable development of eco-industry and green growth. European Journal of Sustainable Development, 2(1), 171-171
- Sawada, Y., Bhattacharyay, M., & Kotera, T. (2019). Aggregate impacts of natural and man-made disasters: A quantitative comparison. International Journal of Development and Conflict, 9(1), 43-73.
- Shabnam, N. (2014). Natural disasters and economic growth: A review. International Journal of Disaster Risk Science, 5(2), 157-163. DOI: 10.1007/s13753-014-0022-5
- Shakeri, A., zamani, R., & Vartabian Kashani, H. (2022). Impact of Export Diversification and Export Composition on Economic Growth of Iran. Economic Growth and Development Research, 12(46), 34-15. doi: 10.30473/egdr.2020.52276.5753. (In Persian).
- Skidmore, M. & Toya, H. (2002), Do natural disasters promote long-run growth?, Economic Inquiry, 40(4), 664-687
- Stock, J.H., & Watson, M.W. (1993). A simple estimator of cointegrating vectors in higher order integrated systems. Econometrica. 61(4), 783- 820. DOI: 10.2307/2951763
- Strobl, E. (2012). The economic growth impact of natural disasters in developing countries: Evidence from hurricane strikes in the Central American and Caribbean regions. Journal of Development economics, 97(1), 130-141. doi:10.1016/j.jdeveco.2010.12.002
- Tamuly, R., & Mukhopadhyay, P. (2022). Natural disasters and well-being in India: A household-level panel data analysis. International Journal of Disaster Risk Reduction, 79, 103158. DOI: 10.1016/j.ijdrr.2022.103158
- Tariq, A., Badir, Y., & Chonglerttham, S. (2019). Green innovation and performance: moderation analyses from Thailand. European Journal of Innovation Management, 22(3), 446-467.
- Tu, Y. T., Lin, C. Y., Ehsanullah, S., Anh, N. H. V., Duong, K. D., & Huy, P. Q. (2023). Role of energy consumption and sustainability-oriented eco-innovation on economic growth: evidence from Middle Eastern economy. Environmental Science and Pollution Research, 30(2), 3197-3212.
- Wang, L., Chang, H. L., Rizvi, S. K. A., & Sari, A. (2020). Are eco-innovation and export diversification mutually exclusive to control carbon emissions in G-7 countries?. Journal of environmental management, 270, 110829.
- Warsame, A. A., Mohamed, J., & Sarkodie, S. A. (2024). Natural disasters, deforestation, and emissions affect economic growth in Somalia. Heliyon, 10(6), e28214. DOI: 10.1016/j.heliyon.2024.e28214
- Zhang, Y., Kumar, S., Huang, X., & Yuan, Y. (2023). Human capital quality and the regional economic growth: Evidence from China. Journal of Asian Economics, 86, 101593, 1-16. DOI: 10.1016/j.asieco.2023.101593.