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Institutions and the effectiveness of expenditures on environmental protection: evidence from Middle Eastern countries

Author

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  • Hassan F. Gholipour

    (Swinburne Business School, Swinburne University of Technology)

  • Mohammad Reza Farzanegan

    (Philipps-University of Marburg, Center for Near and Middle Eastern Studies (CNMS), Economics of the Middle East Research Group
    CESifo
    Marburg Centre for Institutional Economics (MACIE))

Abstract

Middle Eastern countries are among the top air emitters in per capita terms worldwide. We examine the effect of government expenditures on environmental protection (GEEP) on air pollution in the Middle East and North Africa (MENA) countries. Moreover, we explore whether countries with stronger quality of governance can exploit GEEP to reduce air pollution more efficiently. Empirical analysis, using data from 1996 to 2015 for a set of the MENA countries, shows that GEEP alone does not play a significant role in contributing to better environmental quality. However, improvements in quality of governance are shaping the final environmental effects of GEEP in the MENA region. Our results can help policy makers in the region and international community in discovering strategies for reaching the agreed goals under the Paris Climate Deal (COP21), namely net zero emissions in the second half of the century.

Suggested Citation

  • Hassan F. Gholipour & Mohammad Reza Farzanegan, 2018. "Institutions and the effectiveness of expenditures on environmental protection: evidence from Middle Eastern countries," Constitutional Political Economy, Springer, vol. 29(1), pages 20-39, March.
    • Handle: RePEc:kap:copoec:v:29:y:2018:i:1:d:10.1007_s10602-017-9246-x
    DOI: 10.1007/s10602-017-9246-x
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    8. Asma Awan & Sidra Nawaz, 2022. "Towards Green Growth: Monitoring Progress and Investigating Its Determinants in South Asia," Journal of Economic Impact, Science Impact Publishers, vol. 4(3), pages 252-264.
    9. Usama Al-Mulali & Hassan F. Gholipour & Sakiru Adebola Solarin, 2022. "Investigating the environmental Kuznets curve (EKC) hypothesis: does government effectiveness matter? Evidence from 170 countries," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(11), pages 12740-12755, November.
    10. Arrouna Keita & Camelia Turcu, 2020. "Natural Resource Discoveries and Fiscal Discipline," Working Papers 2020.07, International Network for Economic Research - INFER.
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    20. Fan, Wei & Li, Li & Wang, Feiran & Li, Ding, 2020. "Driving factors of CO2 emission inequality in China: The role of government expenditure," China Economic Review, Elsevier, vol. 64(C).

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    More about this item

    Keywords

    Air pollution; Government expenditures; Quality of governance; MENA;
    All these keywords.

    JEL classification:

    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies

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