The debate on the environment-poverty nexus is inconclusive, with past research unable to identify the causal dynamics. This paper uses a unique global panel data set that links (survey and census derived) poverty data to measures of environmental quality at the subnational level.

Tehran, the capital of the Islamic Republic of Iran (IRI), is located in the north of the country with a population of about 8.5 million. The population can reach over 12.5 million during the day, with people from nearby cities commuting daily to Tehran for work.