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The Relationship Between Good Governance And Carbon Dioxide Emissions: Evidence From Developing Economies

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  • AZMAT GANI

    (Sultan Qaboos University)

Abstract

This paper examines the relationship between five dimensions of good governance (political stability, government effectiveness, regulatory quality, rule of law, and corruption) and carbon dioxide (CO2) emissions in a cross-section of developing countries. Two measures of CO2 emissions are utilized: CO2 emissions in kilograms per 2000 US dollars of gross domestic product (GDP) and in metric tons per capita. Robust results are obtained for a number of variables when the dependent variable is CO2 emissions in metric tons per capita. The results provide confirmation that political stability, the rule of law, and control of corruption are negatively and statistically significantly correlated with CO2 emissions per capita. The results also provide evidence in support of the Environmental Kuznets Curve (EKC) and that trade openness and the size of industrial sector as other strong correlates of CO2 emissions.

Suggested Citation

  • Azmat Gani, 2012. "The Relationship Between Good Governance And Carbon Dioxide Emissions: Evidence From Developing Economies," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 37(1), pages 77-93, March.
    • Handle: RePEc:jed:journl:v:37:y:2012:i:1:p:77-93
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    More about this item

    Keywords

    Carbon Dioxide; Emissions; Governance; Developing Countries; Regulation;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O50 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - General
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q59 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Other

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