The industrial sector is one of the major sources of environmental pollution. Industrial processes can generate many types of pollution including water pollution, soil pollution, air pollution, and noise pollution. With the expansion of industrial towns across Iran, this country has seen an increase in the amount of industrial pollutants. To tackle this issue, it is necessary to identify the factors that affect the development of green industries. This study aimed to identify and model the factors that influence the development of green industries and determine government policies and regulations that could be effective in reducing industrial pollution. First, the existing literature was reviewed, and 45 factors that can potentially affect the development of green industries were identified. Then the subject was further explored by designing and distributing a questionnaire with focus on a specific case, which was Mashhad industrial zone. The software SmartPLS was used to evaluate the fit of the developed model and then the structural equation modeling technique was employed to construct a model for the influential factors. The results showed that among the studied variables, seven variables have a significant impact on the development of green industries. The factor with the greatest effect on the development of green industries was found to be the “current situation of the industry,” followed by “government incentives,” “managerial commitment,” “market for green products,” “competition strategies,” “government oversight,” and “political affairs,” respectively.

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