Examining the Impact of Oil Revenues on Urban Sprawl around Tehran with Emphasis on Housing Prices, Services, and Agriculture (Case Study: Marginalized Areas of Mortezā Gerd and Ghiām Dasht)

Document Type : Research Article (Applied - Development)

Authors

1 PhD Student of Sociology, North Tehran Branch, Islamic Azad University, Tehran, Iran.

2 Faculty Member, Department of Sociology, North Tehran Branch, Islamic Azad University, Tehran, Iran

3 Faculty Member, Department of Sociology, North Tehran Branch, Islamic Azad University, Tehran, Iran.

10.22103/jusg.2026.2174

Abstract

Objective: This research investigates relationship between oil revenues and housing prices, service sector income, and agricultural income from 2001 to 2021.
Materials and Methods: In the first phase, the impact of oil revenues on housing prices, as well as service and agricultural sector incomes, is examined. In the second phase, the effect of housing prices, rent, and service and agricultural sector incomes on population growth in the peripheral areas is analyzed using correlation tests.
Results: The studyis based on the "Dutch Disease" hypothesis in resource-rich countries. The results show that oil revenues have a positive and significant impact on housing prices and the service sector, with both variables increasing as oil revenues rise. However, no significant effect of oil revenues on agricultural income is observed. In the second phase, housing prices positively influence population growth in Mortezā Gerd and Ghiām Dasht, while a decrease in service sector income leads to an increase in urban sprawl. The agricultural sector shows no impact on urban sprawl.
Conclusion: Overall, the findings suggest that from 2001 to 2021, increasing oil revenues have contributed to the rise in urban sprawl around Tehran. The "Dutch Disease" hypothesis holds true for non-tradable goods, such as housing and services, but not for tradable goods like agriculture. In conclusion, the increase in oil revenues has led to urban sprawl in the Tehran outskirts, as rising oil revenues have resulted in higher housing prices and service sector expansion.

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