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Regional environmental performance and governance quality: a nonparametric analysis

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  • George Halkos
  • Aksel Sundström
  • Nickolaos Tzeremes

Abstract

This paper applies nonparametric estimators to examine the effect of regional quality of government on the environmental performance in the NUTS 1 regions in France, Germany, and the UK. A novel measure on governance is used, gauging the partiality, corruption and effectiveness of government services in each region. By utilizing regional-level measures of three pollutants (CO 2 , CH 4 and N 2 O), the effect of governance on environmental efficiency is analyzed. The empirical analysis suggests that there is a nonlinear relationship between regions’ governance quality levels and their environmental performance. It appears that the effect of regional quality of governance is positive up to a certain level, then turning slightly negative. This suggests that higher governance quality will not always result in increased environmental efficiency. Copyright Society for Environmental Economics and Policy Studies and Springer Japan 2015

Suggested Citation

  • George Halkos & Aksel Sundström & Nickolaos Tzeremes, 2015. "Regional environmental performance and governance quality: a nonparametric analysis," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 17(4), pages 621-644, October.
    • Handle: RePEc:spr:envpol:v:17:y:2015:i:4:p:621-644
    DOI: 10.1007/s10018-015-0106-5
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    More about this item

    Keywords

    Quality of governance; Environmental performance; Regions; Nonparametric analysis; C14; Q58; R11;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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