پرویز حاجیانی

All quarters of the globe worries about the globe including environmentalists, literati, politicians, and religious people. The main question of the study is which economic variables should be inflated leading to neither environmental degradation nor deceleration in the rate of economic growth, depending on the length of time period (long and short term). This study aims to estimate the long and short term elasticities of environmental pollution, economic growth, and energy using the simultaneous cointegrated and Error Correction models in Iran in 1974-2012. Two methodologies are employed for the estimation: Limited and Full Information methodologies to check the accuracy of Simultaneous Error Correction Model. Based on the results, the long-term solutions are more effective than the short-term ones showing the time-consuming nature of the environmental, economic, and energetic policies. Moreover, the elasticities of economic growth are greater than those of environmental pollution implying that the environmental pollution provides a flimsy pretext to impose a limit on economic activities. However, it is urbanization which presents the most profound impacts on the energy consumption, representing consumerism as an inveterate concomitant of urbanization. Thus, the governors are advised 1) to make a compromise between economy and environment by improving the economic infrastructure and developing more effective environmental- and cultural-policies; 2) to encourage the green economic sectors by formulating the long run environmental policies; and 3) to implement the cultural and energetic programs to increase the environmental quality without stopping the economic growth. Finally, The Simultaneous Error Correction Model does not work well.