Research Paper
International Economics
Mohammad Rahimi Ghasemabadi; Reza Zeinalzadeh; Zeinolabedin Sadeghi; Mohsen Zayandehroodi
Abstract
In the modern age, the rise in environmental protection information has resulted in undertaking ecological initiatives by different countries and corporation, aiming to raise environmental performance. This study investigates environmental and socioeconomic monetary values related to carbon emissions ...
Read More
In the modern age, the rise in environmental protection information has resulted in undertaking ecological initiatives by different countries and corporation, aiming to raise environmental performance. This study investigates environmental and socioeconomic monetary values related to carbon emissions produced in activities required for Iran's export. Monetary value damages caused by air pollution have received attention, and in this research, we focused on the financial damages of pollution. Using these monetary values allowed us to compare damages with the economic effects of trade, identify polluted industries and compute trade balance indicators with a wider scope. For this purpose, we used the Input-Output table and calculated the pollution for different industries. The results show that the damages associated with international trade are considerable to the extent that cannot be neglected. Iran 2015 economic data show that avoided Damages were $2432 million by importing, and at the same time, exports caused $3448 million of damages. While the imports had been produced domestically, $2439 million of damages (DIM) and $ 2049 million of value added (VIM) would have been generated. Net damages (ΔD) generated by the trade amounted to $1008 million, which accounts for 0.84 % of the net value added created by the trade of Agriculture. This implied that the net effect of trade was a $1016-million increase in damages caused by CO2 in 2015. Furthermore, the results show that every $1 million of net value added generated by trade caused emission-related net damages of $0.321 million overall.