Urbanization, Water Pollution and Economic Growth in Provinces of Iran with Spatial Panel Approach

Document Type : Research Paper


1 PhD Student, Dept. of Agricultural Economics, Faculty of Economics and Management, University of Sistan and Baluchestan, Zahedan, Iran

2 Prof., Dept. of Agricultural Economics, Faculty of Economics and Management, University of Sistan and Baluchestan, Zahedan, Iran

3 Assist. Prof., Dept. of Agricultural Economics, Faculty of Economics and Management, University of Sistan and Baluchestan, Zahedan, Iran


One of the most serious threats to many countries is water pollution caused by the use of fertilizers and chemical pesticides in agriculture. Limited research has been done in this field in Iran. Spatial dimension and disparity between provinces have not been considered. This research has been conducted in the unique Framework of Environment Kuznets Curve (EKC), to investigate the relationship between urbanization, water pollution and economic growth during the years 2011-2019 in 30 provinces of Iran. First, the stationary test of the variables was performed and then before estimating the model, diagnostic tests were used to ensure the existence of a spatial correlation relationship between the variables using the spatial panel approach. Levin, Lin, and Chou stationary tests showed that all variables were at the mana level. Moran, Jerry, and LM Lag (Robust) diagnostic tests then confirmed the existence of spatial dependence and the Spatial Durbin model. The results of estimating the Spatial Durbin model show the urban population with a coefficient of 54.07 and the square of the urban population with a coefficient of -0.004 and the overflow effects of these variables with coefficients of 0.054 and 0.000004, respectively, in the provinces of Iran. Water pollution index has a positive and negative effect, which indicates the confirmation of the Environmental Kuznets Curve hypothesis (KEC) in the field of water pollution in the provinces of Iran. With the expansion of urbanization and economic growth, the water pollution index has increased, but when there is a certain amount exceeds, the water pollution index due to the use of pesticides and chemical fertilizers in a province and adjacent provinces. It is suggested that agricultural policy makers make the use of organic fertilizers instead of chemical fertilizers mandatory to control water pollution in all provinces of Iran.


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