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Democratic Institutions and Environmental Quality: Effects and Transmission Channels

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  • Romuald, Kinda Somlanare

Abstract

This paper aims at analysing the effect of democratic institutions on environmental quality (carbon dioxide per capita, sulfure dioxide per capita) and at identifying potential channel transmissions. We use panel data from 1960 to 2008 in 122 developing and developed countries and modern econometric methods. The results are as follows: Firstly, we show that democratic institutions have opposite effects on environment quality: a positive direct effect on environment quality and a negative indirect effect through investments and income inequality. Indeed, democratic institutions attract investments that hurt environment quality. Moreover, as democratic institutions reduce income inequality, they also damage environment. Secondly, we find that the direct negative effect of democratic institutions is higher for local pollutant (SO2) than for global pollutant (CO2). Thirdly, the nature of democratic institutions (presidential, parliamentary) is not conducive to environmental quality. Fourtly, results suggest that the direct positive effect of democratic institutions on environment quality is higher in developed countries than in developing countries. Thus, the democratic process in the first group of countries has increased their awareness for the environment protection.

Suggested Citation

  • Romuald, Kinda Somlanare, 2011. "Democratic Institutions and Environmental Quality: Effects and Transmission Channels," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 120396, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae11:120396
    DOI: 10.22004/ag.econ.120396
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    Cited by:

    1. Wen-Lin Wu, 2017. "Institutional Quality and Air Pollution: International Evidence," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 16(1), pages 49-74, June.
    2. Arman Canatay & Leonel Prieto & Muhammad Ruhul Amin, 2023. "Integrating “Neoliberal-Turn” and “Social-Turn” Constructs in Examining Sustainable Development and Happiness and Life Satisfaction: A Global-, Country Cluster-, and Country-Level Study," Sustainability, MDPI, vol. 15(13), pages 1-56, June.
    3. Neslihan Ursavaş, 2022. "The Impact of Democracy on Environmental Degradation in OECD Countries," EKOIST Journal of Econometrics and Statistics, Istanbul University, Faculty of Economics, vol. 0(37), pages 213-235, December.
    4. Zhang, Wenwen & Chiu, Yi-Bin, 2020. "Do country risks influence carbon dioxide emissions? A non-linear perspective," Energy, Elsevier, vol. 206(C).
    5. Muhammad Haseeb & Muhammad Azam, 2021. "Dynamic nexus among tourism, corruption, democracy and environmental degradation: a panel data investigation," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(4), pages 5557-5575, April.
    6. Mohamed Boly, 2018. "CO 2 mitigation in developing countries: the role of foreign aid," Working Papers halshs-01740881, HAL.
    7. Aurolipsa Das & Narayan Sethi, 2023. "Modelling the environmental pollution-institutional quality nexus in low- and middle-income countries: exploring the role of financial development and educational level," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(2), pages 1492-1518, February.
    8. Saeed Ghodrati & Javad Harati & Azim Nazari, 2018. "The Democracy and Environment Quality in Selected Countries: An Application of Panel Data," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 22(1), pages 21-49, Winter.
    9. Lee, Chien-Chiang & Yuan, Zihao & Lee, Chi-Chuan, 2023. "A nonlinear analysis of the impacts of information and communication technologies on environmental quality: A global perspective," Energy Economics, Elsevier, vol. 128(C).

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    Keywords

    Environmental Economics and Policy;

    JEL classification:

    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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