Journal of Environmental Studies

Journal of Environmental Studies

Investigation of the Relationship between Economic Growth, Fossil Fuel Consumption, and Urbanization with Environmental Degradation in Iran: Testing the Environmental Kuznets Curve Hypothesis with the ARDL Approach

Document Type : Research Paper

Authors
Mojtaba Salimi 1
Nemat Allah Nezamivand chegini 2
Yousef Ahmadi 1
Mojtaba Jahangiri Zarkani 3
1 Scientific Group of Hormoz Studies and Research Center, Hormoz Research Institute, University of Hormozgan, Bandar Abbas, Iran.
2 Department of Political Geography, Faculty of Geography, Islamic Azad University, Rasht, Iran.
3 Department of Political Geography, Faculty of Geographical Sciences, Kharazmi University, Tehran, Iran.
10.22059/jes.2026.411594.1008679
Abstract
Objective: The rapid growth of energy consumption and urbanization in recent decades, along with strong dependence on fossil fuels, has imposed significant environmental pressures on Iran. The concentration of population and economic activities in urban areas, along with the increase in energy demand and the development of transportation, has led to an increase in air pollution and carbon dioxide emissions. The main objective of this research is the assessment of the environmental consequences of energy consumption patterns in Iran, with emphasis on the role of economic growth, fossil fuel consumption, and urbanization within the framework of the Environmental Kuznets Curve hypothesis.
Method: This study is applied in terms of purpose and descriptive-analytical in terms of nature. Annual time-series data of Iran during the period 1980 to 2022 have been used to examine short-term and long-term relationships among the variables. Per capita carbon dioxide emissions are considered as the environmental degradation index, while economic growth, fossil fuel consumption, and urbanization are considered as explanatory variables. Considering the mixed order of integration of the variables, the autoregressive distributed lag approach and the error correction model have been used for empirical estimation.
Results: The nonlinear inverted U-shaped relationship between economic growth and environmental degradation confirms the Environmental Kuznets hypothesis. Fossil fuel consumption (0.62) is the most important factor in the increase of CO2. Urbanization (0.29) has a positive effect on the intensification of pollution, which is due to unbalanced urban expansion, concentration of pollutants, and weak clean transportation. In the short term, shocks of economic growth (0.41), fuel consumption (0.37), and urbanization (0.18) intensify environmental pressure. The error correction term (0.53) shows that more than 50 percent of the disequilibrium is adjusted in each period.
Conclusions: Environmental degradation in Iran is not merely the result of economic growth, but has its roots in the energy consumption pattern and the spatial structure of urbanization. Although long-term improvement of the environment is possible, without targeted policy intervention, it will be slow and costly. Controlling and reducing pollution requires reforming the energy consumption pattern, reducing dependence on fossil fuels, and directing urbanization toward sustainable and environmentally compatible patterns.
Keywords
carbon dioxide
energy consumption
environmental pollution
Iran
urbanization
Subjects
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Journal of Environmental Studies
Volume 52, Issue 2
Summer 2026
Pages 149-169