Has CO2 Emission Increased the Iranian Economic Growth?

In recent decades, damages of environmental effects have increased. These damages are due to different factors like population growth, economic growth, energy consumption and industrial activities. This paper is trying to investigate the Environmental effects of energy consumption and economic growth by using annual time series date (1971-2008) as well applying the Johansen-Juselius co-integration approach in Iran. The Findings show that if the consumption energy intensify increases one percent leaded to incline carbon dioxide gas emission near to 0.877 percent on average. Meanwhile, increasing one percent per-capita gross domestic product caused to raise per-capita carbon dioxide gas emission about 1.29 percent on average. Moreover, the results gained from Engel Granger Causality test demonstrated a mutual causality between the Iranian economic growth and volume of CO2 emission at 5 percent confidence level.