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The Effects of Rule of Law, Regulatory Quality, and Renewable Energy on CO2 Emissions in South Asia

Author

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  • Haider Mahmood

    (Associate Professor, Department of Finance, College of Business Administration, Prince Sattam Bin Abdulaziz University, 173 Alkharj 11942, Saudi Arabia.)

  • Shafiqul Hassan

    (College of Law, Prince Sultan University, Riyadh 11586, Saudi Arabia)

  • Muhammad Tanveer

    (College of Economics and Administrative Science, Imam Mohammad Ibn Saud Islamic University (IMSIU), Riyadh Saudi Arabia.)

  • Abdul-Rahim Ahmad

    (Department of Decision Sciences (DDS) Karachi School of Business and Leadership (KSBL), Pakistan.)

Abstract

Governance can help in regulating the environmental quality of any economy. Hence, the present study explores the effects of rule of law and regulatory quality on the CO2 emissions in four South Asian economies from 1996-2019, controlling renewable energy and income level in the model. The results corroborate the Environmental Kuznets Curve (EKC) hypothesis in the long-run analysis of four South Asian economies but renewable energy could not affect the CO2 emissions. Moreover, regulatory quality helps reduce CO2 emissions and shows the technique and/or composition effects in these economies. However, the rule of law has a pre-dominant scale effect in these economies and increases CO2 emissions. Based on the results, we recommend South Asian countries to strengthen the regulatory quality to support a clean environment. Moreover, rule of law needs attention and modifications to have pleasant environmental effects.

Suggested Citation

  • Haider Mahmood & Shafiqul Hassan & Muhammad Tanveer & Abdul-Rahim Ahmad, 2022. "The Effects of Rule of Law, Regulatory Quality, and Renewable Energy on CO2 Emissions in South Asia," International Journal of Energy Economics and Policy, Econjournals, vol. 12(6), pages 16-21, November.
    • Handle: RePEc:eco:journ2:2022-06-3
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    References listed on IDEAS

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    1. Toto Gunarto & Ukhti Ciptawaty & Dedy Yuliawan & Ahmad Mahyudin & Ahmad Dhea Pratama & Heru Wahyudi, 2024. "Comparison of Energy Consumption to Economic Growth in Developing Asian and Developed Asian Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 14(1), pages 264-271, January.

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    More about this item

    Keywords

    CO2 emissions; rule of law; regulatory quality; renewable energy; economic growth;
    All these keywords.

    JEL classification:

    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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