Shahid Beheshti University Journal of Economics and Modelling 2476-5775 8 29 2017 05 22 Analyzing the Impact of Green Tax on Emission of Pollution and Health Index in Iran: A Simultaneous Equations Model Analyzing the Impact of Green Tax on Emission of Pollution and Health Index in Iran: A Simultaneous Equations Model 89 117 49615 FA Hojjat Izadkhasti Department of Economics, Faculty of Economics and Political Sciences, Shahid Beheshti University Ali Akbar Arabmazar Department of Economics, Faculty of Economics and Political Sciences, Shahid Beheshti University Moggan Khoshnamvand Department of Economics, Faculty of Economics and Political Sciences, Shahid Beheshti University Journal Article 2017 04 15 In the process of sustainable development, the relationship between environment, health and economic growth is very important. So, although economic growth can improve health indicators, reducing the quality of the environment can have negative effects on society health indicators. As well as a result, in the context of the market mechanism, in the case where there are negative externalities, Pareto optimal condition is not occur and induce market failure. In this case, the government by lay tax on each unit of pollutant, can improves the quality of the environment and health index in society. In this study, the effects of green taxes on emissions of pollution and health index in Iran, analyzed using a two-stage least square technique and system of simultaneous equations, during the period (1989-2014). The results of the model indicate that green tax will reduce pollutant. Also, simultaneously reducing emissions of pollution will increase the health index. In the process of sustainable development, the relationship between environment, health and economic growth is very important. So, although economic growth can improve health indicators, reducing the quality of the environment can have negative effects on society health indicators. As well as a result, in the context of the market mechanism, in the case where there are negative externalities, Pareto optimal condition is not occur and induce market failure. In this case, the government by lay tax on each unit of pollutant, can improves the quality of the environment and health index in society. In this study, the effects of green taxes on emissions of pollution and health index in Iran, analyzed using a two-stage least square technique and system of simultaneous equations, during the period (1989-2014). The results of the model indicate that green tax will reduce pollutant. Also, simultaneously reducing emissions of pollution will increase the health index. https://ecoj.sbu.ac.ir/article_49615_cdb3ae73dfe31dc8e1b7920781cb44f7.pdf