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Does the quality of institutions modify the economic growth-carbon dioxide emissions nexus? Evidence from a group of emerging and developing countries

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  • Dorota Wawrzyniak
  • Wirginia Doryń

Abstract

The purpose of the study is to examine the impact of economic growth on carbon dioxide emissions dependent on the quality of institutions, for a sample of 93 emerging and developing countries over the period 1995–2014. We measured institutional quality using government effectiveness and control of corruption indicators. The GMM estimation results indicate that government effectiveness modifies the economic growth-emissions relationship. For low values of this institutional indicator, we found diminishing increments of CO2 emissions as GDP grows. In the case of countries with high government effectiveness, we observed a statistically significant reduction in CO2 emissions only in some specifications. We did not confirm the moderating role of the control of corruption in shaping the economic growth-carbon dioxide emissions nexus. These findings have important policy implications, suggesting that countries should direct efforts to improve the institutional background. Additionally, we provide empirical support for the presence of the inverted U-shaped relationship between economic growth and carbon dioxide emissions postulated by the environmental Kuznets curve (EKC).

Suggested Citation

  • Dorota Wawrzyniak & Wirginia Doryń, 2020. "Does the quality of institutions modify the economic growth-carbon dioxide emissions nexus? Evidence from a group of emerging and developing countries," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 33(1), pages 124-144, January.
  • Handle: RePEc:taf:reroxx:v:33:y:2020:i:1:p:124-144
    DOI: 10.1080/1331677X.2019.1708770
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    Cited by:

    1. Bekhzod Kuziboev & Ergash Ibadullaev & Olimjon Saidmamatov & Alibek Rajabov & Peter Marty & Sherzodbek Ruzmetov & Alisher Sherov, 2023. "The Role of Renewable Energy and Human Capital in Reducing Environmental Degradation in Europe and Central Asia: Panel Quantile Regression and GMM Approach," Energies, MDPI, vol. 16(22), pages 1-12, November.
    2. Amin, Nabila & Shabbir, Muhammad Salman & Song, Huaming & Farrukh, Muhammad Umar & Iqbal, Shahid & Abbass, Kashif, 2023. "A step towards environmental mitigation: Do green technological innovation and institutional quality make a difference?," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    3. 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.
    4. Škare, Marinko & Porada-Rochoń, Małgorzata, 2023. "Are we making progress on decarbonization? A panel heterogeneous study of the long-run relationship in selected economies," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    5. Torok Laszlo, 2023. "Correlation of Greenhouse Gas Emissions with Economic Growth in the European Union (2010-2019)," International Journal of Energy Economics and Policy, Econjournals, vol. 13(4), pages 102-110, July.
    6. Mohsin Shabir, 2024. "Does Financial Inclusion Promote Environmental Sustainability: Analyzing the Role of Technological Innovation and Economic Globalization," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 19-46, March.
    7. Zhang, Mingming & Wong, Wing-Keung & Kim Oanh, Thai Thi & Muda, Iskandar & Islam, Saiful & Hishan, Sanil S. & Abduvaxitovna, Shamansurova Zilola, 2023. "Regulating environmental pollution through natural resources and technology innovation: Revisiting the environment Kuznet curve in China through quantile-based ARDL estimations," Resources Policy, Elsevier, vol. 85(PA).
    8. Emma Serwaa Obobisa & Haibo Chen & Isaac Adjei Mensah, 2023. "Transitions to sustainable development: the role of green innovation and institutional quality," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(7), pages 6751-6780, July.
    9. Durdana Qaiser GILLANI & Muhammad Zahid NAEEM & Syed Muhammad Irtaza Haider KIRMANI & Ramona BIRAU & Petre Valeriu NINULESCU, 2023. "The Role of Energy Consumption and Economic Growth in Environmental Degradation in Asian Countries," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 3, pages 68-72.
    10. Tee, Chwee-Ming & Wong, Wai-Yan & Hooy, Chee-Wooi, 2023. "Economic policy uncertainty and carbon footprint: International evidence," Journal of Multinational Financial Management, Elsevier, vol. 67(C).

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