The Effect of Land Prices on Carbon Dioxide Emissions in Iran’s Industrial Sector

Document Type : Research Paper

Author

Department of Economic Sciences, Faculty of Economics and Management, University of Tabriz, Tabriz, Iran

10.22059/jtcp.2026.409852.670547

Abstract

Environmental pollution has increased along with the world's energy demand, contributing to the energy crisis and global warming. Carbon dioxide is one of the most important greenhouse gases, accounting for 58% of global energy consumption. Therefore, given the importance of carbon dioxide emissions, the present study seeks to investigate the effect of land prices on carbon dioxide emissions in Iran’s industrial sector by using quantile regression method over the period of first quarter of 2011 to the fourth quarter of 2023. The research findings indicate that in all deciles, land prices, value added of industrial sector and urban population growth rate have a significant positive impact on carbon dioxide emissions in Iran's industrial sector and the square of value added of industrial sector has a significant negative impact on carbon dioxide emissions in Iran's industrial sector. Regarding the positive impact of land prices on carbon dioxide emissions, it was concluded that as land prices increase, financing constraints on companies are exacerbated, increasing carbon dioxide emissions by limiting their ability to finance environmentally friendly projects or adopt innovative technologies, as well as by pushing them to reduce research and development costs and rely on cheaper, carbon-intensive energy sources. Therefore, According to the results of the research, it is recommended that economic policymakers a) provide the necessary basis for reducing land prices and subsequently reducing carbon dioxide emissions by implementing tax-disincentive policies such as capital gains tax to reduce land speculation and land hoarding. b) provide the basis for economic growth along with pollution reduction by improving the efficiency of energy input consumption in production units. c) formulate urban development plans in line with environmental issues.

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Main Subjects

References

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Town and Country Planning
Volume 17, Issue 2
Autumn & Winter
October 2025
Pages 347-358

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History

  • Receive Date: 20 January 2026
  • Revise Date: 25 February 2026
  • Accept Date: 26 February 2026

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