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The Effects of Economic and Political Freedom on CO2 Emissions

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Author Info

  • Carlsson, Fredrik

    ()
    (Department of Economics, School of Economics and Commercial Law, Göteborg University)

  • Lundström, Susanna

    (Department of Economics, School of Economics and Commercial Law, Göteborg University)

Abstract

In this paper we investigate the effects of political and economic freedom on CO2 emissions. As far as we know this is the first cross-country study of the relationship between economic freedom and environmental quality. Economic freedom is measured in several ways. We find that increased price stability and legal structure decrease emissions in countries with a small industry share of GDP, but increases emissions in countries with a large industry share of GDP. The decreasing effect from increased use of market is significant but non-robust, and increased freedom to trade does not have any significant effect. The effect of political freedom on CO2 emissions is insignificant, most probably since CO2 emissions is a global environmental problem and hence subject to free-riding by the individual countries.

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File URL: http://hdl.handle.net/2077/2807
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Bibliographic Info

Paper provided by University of Gothenburg, Department of Economics in its series Working Papers in Economics with number 29.

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Length: 16 pages
Date of creation: 27 Sep 2000
Date of revision: 21 Aug 2001
Handle: RePEc:hhs:gunwpe:0029

Contact details of provider:
Postal: Department of Economics, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG, Sweden
Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/
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Related research

Keywords: Carbon Dioxide; Economic Freedom; Institutions; Political Freedom;

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References

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Cited by:
  1. Lamla, Michael J., 2009. "Long-run determinants of pollution: A robustness analysis," Ecological Economics, Elsevier, vol. 69(1), pages 135-144, November.
  2. Martin Gassebner & Michael Lamla & Jan-Egbert Sturm, 2006. "Economic, Demographic and Political Determinants of Pollution Reassessed: A Sensitivity Analysis," KOF Working papers 06-129, KOF Swiss Economic Institute, ETH Zurich.

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