In collaboration with Payame Noor University and Iranian Association for Energy Economics (IRAEE)

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

Abstract

The objective of this research is to examine the growth of green productivity in the industry and transportation sectors of Iran during 2001-2019 and compare it with the conventional productivity index, which has been the criterion considered in policy-making decisions for several decades. Although in traditional productivity theories, green productivity indices generally have higher growth rates than conventional ones, some studies have shown that green productivity can grow at a lower rate than traditional productivity. The results of extended growth accounting along with using SUR methods for calculating the green productivity of two sectors 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 traditional 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, the policy recommendation is to transform the adoption of an economic growth strategy focused on green productivity from a choice to a necessity, 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.

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