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Is Democracy Good for the Environment? Quasi-Experimental Evidence from Regime Transitions

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  • Laura Policardo

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    Abstract

    This paper tests the hypothesis that democratisation is conducive to less environmental depletion due to human activity. Using Interrupted Time Series (ITS) design for a panel of 47 transition countries and two indexes of pollution, CO2 emissions and PM10 concentrations, I find that democracies and dictatorships have two different targets of environmental quality, with those of democracies higher than those of dictatorships. Income inequality may as well alter this targets, but with opposite effects in the two different regimes

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    File URL: http://www.econ-pol.unisi.it/quaderni/605.pdf
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    Bibliographic Info

    Paper provided by Department of Economics, University of Siena in its series Department of Economics University of Siena with number 605.

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    Date of creation: Dec 2010
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    Handle: RePEc:usi:wpaper:605

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    Keywords: Democracy; Environment; Cointegration; Interrupted Time Series; Segmented Regression;

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    1. Branko Milanovic, 2003. "The median voter hypothesis, income inequality and income," HEW 0305001, EconWPA.
    2. Douglas Holtz-Eakin & David Joulfaian & Harvey S. Rosen, 1993. "Sticking it Out: Entrepreneurial Survival and Liquidity Constraints," NBER Working Papers 4494, National Bureau of Economic Research, Inc.
    3. Congleton, Roger D, 1992. "Political Institutions and Pollution Control," The Review of Economics and Statistics, MIT Press, vol. 74(3), pages 412-21, August.
    4. Kao, Chihwa, 1999. "Spurious regression and residual-based tests for cointegration in panel data," Journal of Econometrics, Elsevier, vol. 90(1), pages 1-44, May.
    5. Blanchflower, D.G. & Oswald, A., 1991. "What Makes an Entrepreneur?," Economics Series Working Papers 99125, University of Oxford, Department of Economics.
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