Decomposition of Changes in CO2 Emission in Iranian Provinces

In this study, we used the Shephard distance functions to analyze environmental technical efficiency and decomposition of Changes in CO2 Emissions to Five factors: “technical efficiency change effect, technical change effect, and emission indexes associated with capital, labor and energy “in 28 provinces of Iran for the period 2003-2013. Our study used panel data and data envelopment analysis technique and covered both Emission reduction and increase.  Our findings show that Iran has not had an effective environmental performance during the period under review.  The average technical efficiency and environmental performance in selected provinces during the period in question is 0.796.  Further, the results of decomposition indicate that 1)The most important positive factor in Emission reduction in Iran was emission index associated with labor with an average of 0.6256 2) Emission index associated with energy was The most important factor in Emission increase with an average of 1.0182. 3) changes in technical efficiency have had a positive role in emission reduction, given a value greater than