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Rule of law and the environmental Kuznets curve: evidence for carbon emissions

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  • Concetta Castiglione
  • Davide Infante
  • Janna Smirnova

Abstract

In response to the growing body of literature on the relationship between the environment and institutions, this study investigates how the rule of law influences the turning point of the environmental Kuznets curve (EKC). Using Bradford et al.'s (2005) and Leitão's (2010) alternative specification of the EKC that avoids non-linear transformation of potentially non-stationary regressors, we find evidence for the EKC in European countries for carbon emissions. Our results show a negative relationship between pollution and the rule of law, demonstrating that when the rule of law is strong, the turning point of the EKC occurs at a lower level of per capita income, thus, enhancing environmental preservation. Since the rule of law provides a composite institutional framework, we argue that the solution to environmental degradation can be sought not only through institutional reforms, but also through the allocation of additional resources to provide an adequate regulatory context in which this institution is enforced.

Suggested Citation

  • Concetta Castiglione & Davide Infante & Janna Smirnova, 2012. "Rule of law and the environmental Kuznets curve: evidence for carbon emissions," International Journal of Sustainable Economy, Inderscience Enterprises Ltd, vol. 4(3), pages 254-269.
  • Handle: RePEc:ids:ijsuse:v:4:y:2012:i:3:p:254-269
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    References listed on IDEAS

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    1. Lopez, Ramon & Mitra, Siddhartha, 2000. "Corruption, Pollution, and the Kuznets Environment Curve," Journal of Environmental Economics and Management, Elsevier, vol. 40(2), pages 137-150, September.
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    Citations

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    Cited by:

    1. Dasgupta, Shouro & De Cian, Enrica, 2016. "Institutions and the Environment: Existing Evidence and Future Directions," MITP: Mitigation, Innovation and Transformation Pathways 240747, Fondazione Eni Enrico Mattei (FEEM).
    2. Concetta Castiglione & Davide Infante & Janna Smirnova, 2018. "Non-trivial Factors as Determinants of the Environmental Taxation Revenues in 27 EU Countries," Economies, MDPI, Open Access Journal, vol. 6(1), pages 1-20, January.
    3. Chris Jeffords & Lanse Minkler, 2016. "Do Constitutions Matter? The Effects of Constitutional Environmental Rights Provisions on Environmental Outcomes," Kyklos, Wiley Blackwell, vol. 69(2), pages 294-335, May.
    4. Shouro Dasgupta & Enrica De Cian & Elena Verdolini, 2016. "The Political Economy of Energy Innovation," Working Papers 2016.35, Fondazione Eni Enrico Mattei.
    5. Concetta Castiglione & Davide Infante & Maria Teresa Minervini & Janna Smirnova, 2014. "Environmental taxation in Europe: What does it depend on?," Cogent Economics & Finance, Taylor & Francis Journals, vol. 2(1), pages 1-8, December.
    6. Concetta Castiglione & Davide Infante & Janna Smirnova, 2014. "Is There Any Evidence on the Existence of an Environmental Taxation Kuznets Curve? The Case of European Countries under Their Rule of Law Enforcement," Sustainability, MDPI, Open Access Journal, vol. 6(10), pages 1-21, October.
    7. Castiglione, Concetta & Infante, Davide & Smirnova, Janna, 2012. "Rule of law and its implications for the environmental taxation-income path across European Countries," MPRA Paper 39433, University Library of Munich, Germany.
    8. Chris Jeffords & Alexi Thompson, 2016. "An empirical analysis of fatal crimes against environmental and land activists," Economics Bulletin, AccessEcon, vol. 36(2), pages 827-842.
    9. 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.
    10. Bilgili, Faik & Koçak, Emrah & Bulut, Ümit, 2016. "The dynamic impact of renewable energy consumption on CO2 emissions: A revisited Environmental Kuznets Curve approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 54(C), pages 838-845.

    More about this item

    Keywords

    environmental Kuznets curve; EKC; rule of law; carbon emissions; panel data; turning point; sustainable development; environmental pollution; CO2; carbon dioxide; environmental protection; sustainability; regulation.;

    JEL classification:

    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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