The Political Economy of CO 2 Emissions: Investigating the Role of Associational and Organizational Freedoms in Environmental Quality

The historical peak in CO 2 emissions has intensified global environmental concerns, urging the identification of key determinants. While economic drivers are well-documented, political dimensions—especially democracy and institutional quality—are increasingly emphasized. However, the role of freedom of association and organization (AOF), a core democratic element, remains largely unexamined in this context. This study fills this gap by analyzing the impact of AOF on CO 2 emissions in the top 20 emitter countries from 2006 to 2022. The selection of these countries enables a focused assessment of the world’s primary polluters, ensuring high policy relevance. Using second-generation panel estimators, the Augmented Mean Group and the Common Correlated Effects Mean Group estimators, the analysis accounts for heterogeneity and cross-sectional dependence. Robustness is tested using the CS-ARDL method, confirming the stability of results. Empirical findings show that higher levels of AOF significantly reduce CO 2 emissions. Income and energy consumption increase emissions, while the effect of trade openness is statistically insignificant. These results suggest that strengthening associational freedoms can offer a dual benefit: advancing democratic norms and achieving environmental goals.