The Growth of Green-Productivity in Industry and Transportation Sectors of Iran: An Application of Growth Accounting Using SUR Method

Mosayebi Otaghsara, Nafise; Elmi, Zahra Mila; Rasekhi, Saeed

doi:10.30473/egdr.2023.68523.6750

Document Type : ORIGINAL ARTICLE

Authors

¹ Ph.D. Student in Economics, Faculty of Economics and Administrative Sciences, University of Mazandaran, Babolsar, Iran.

² Profesor., Faculty of Economics and Administrative Sciences, University of Mazandaran, Babolsar, Iran.

³ . Profesor., Faculty of Economics and Administrative Sciences, University of Mazandaran, Babolsar, Iran.

https://doi.org/10.30473/egdr.2023.68523.6750

Abstract

The main objective of this research is to examine the growth of green productivity in the industry and transportation sectors of Iran (as influential sectors of the country) during the period of 2001-2019 and compare it with the conventional productivity index, which has been the criterion that considered in policy-making decisions in the country for several decades. Although in the framework of conventional productivity theories, green productivity indices generally have higher growth rates compared to conventional ones, many other studies have also shown that green productivity can also grow at a lower rate than conventional productivity. The results of extended growth accounting along with using seemingly unrelated regressions method for calculating the green productivity of two industry and transportation sectors of Iran show that the growth of this index is 2.11% for the industrial sector and -5.8% for the transportation sector, and compared to the conventional method, it was found that the growth of conventional productivity measure for the industry sector is underestimated for 0.7% and for the transportation sector, it is overestimated for 6.76%. Based on the results obtained, the policy recommendation of this research is to transform the adoption of an economic growth strategy focused on green productivity from a choice to a necessity, in order to prevent the creation of misleading ideas about growth prospects and, consequently, prevent the selection of inappropriate policy options by officials, especially in the transportation sector.

Keywords

Main Subjects

Growth Accounting

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The Growth of Green-Productivity in Industry and Transportation Sectors of Iran: An Application of Growth Accounting Using SUR Method

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Volume 14, Issue 54May 2024Pages 35-15

Volume 14, Issue 54
May 2024
Pages 35-15