IDEAS home Printed from https://ideas.repec.org/h/spr/lnopch/978-3-031-61589-4_9.html
   My bibliography  Save this book chapter

The Role of Institutional Factors in Shaping Environmental Performance: Evidence from Developed and Developing Countries

In: Business Analytics and Decision Making in Practice

Author

Listed:
  • Jawahir M. Alshehhi

    (University of Sharjah)

  • Panagiotis D. Zervopoulos

    (University of Sharjah)

Abstract

The present study employs a novel Bayesian data envelopment analysis (DEA) approach to investigate the impact of institutional factors on the relative environmental performance of developed and developing countries. This study establishes a relationship between formal institutional factors (e.g., government effectiveness and corruption control) and environmental performance. The Bayesian DEA method employed here provides valid estimates, outperforming other existing bias-correction DEA techniques in terms of lower mean square error and mean absolute error. The efficiency estimates are incorporated in a two-step generalized method of moments (GMM) for linear dynamic panel data applied to a balanced panel encompassing 144 countries spanning from 2002 to 2019. Consistent with prior research on economic growth and environmental efficiency, this study reveals an inverse relationship between corruption control and environmental performance in developing countries. This relationship is statistically significant but marginal. Unlike developing countries, the relationship between control of corruption and environmental performance is not statistically significant for developed countries. This result extends the concept of “grease the wheel” theory to environmental efficiency. Moreover, the study highlights the substantial and statistically significant impact of past environmental performance on current environmental performance. This underscores the necessity for countries to reinforce their commitment to regulating energy consumption and its resultant CO2 emissions.

Suggested Citation

  • Jawahir M. Alshehhi & Panagiotis D. Zervopoulos, 2024. "The Role of Institutional Factors in Shaping Environmental Performance: Evidence from Developed and Developing Countries," Lecture Notes in Operations Research, in: Ali Emrouznejad & Panagiotis D. Zervopoulos & Ilhan Ozturk & Dima Jamali & John Rice (ed.), Business Analytics and Decision Making in Practice, chapter 0, pages 97-108, Springer.
    • Handle: RePEc:spr:lnopch:978-3-031-61589-4_9
    DOI: 10.1007/978-3-031-61589-4_9
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:lnopch:978-3-031-61589-4_9. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.