IDEAS home Printed from https://ideas.repec.org/a/jed/journl/v37y2012i1p77-93.html
   My bibliography  Save this article

The Relationship Between Good Governance And Carbon Dioxide Emissions: Evidence From Developing Economies

Author

Listed:
  • AZMAT GANI

    (Sultan Qaboos University)

Abstract

This paper examines the relationship between five dimensions of good governance (political stability, government effectiveness, regulatory quality, rule of law, and corruption) and carbon dioxide (CO2) emissions in a cross-section of developing countries. Two measures of CO2 emissions are utilized: CO2 emissions in kilograms per 2000 US dollars of gross domestic product (GDP) and in metric tons per capita. Robust results are obtained for a number of variables when the dependent variable is CO2 emissions in metric tons per capita. The results provide confirmation that political stability, the rule of law, and control of corruption are negatively and statistically significantly correlated with CO2 emissions per capita. The results also provide evidence in support of the Environmental Kuznets Curve (EKC) and that trade openness and the size of industrial sector as other strong correlates of CO2 emissions.

Suggested Citation

  • Azmat Gani, 2012. "The Relationship Between Good Governance And Carbon Dioxide Emissions: Evidence From Developing Economies," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 37(1), pages 77-93, March.
    • Handle: RePEc:jed:journl:v:37:y:2012:i:1:p:77-93
    as

    Download full text from publisher

    File URL: http://www.jed.or.kr/full-text/37-1/4.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Malcolm Rutherford, 2001. "Institutional Economics: Then and Now," Journal of Economic Perspectives, American Economic Association, vol. 15(3), pages 173-194, Summer.
    2. Davood Behbudi & Siab Mamipour & Azhdar Karami, 2010. "Natural Resource Abundance, Human Capital And Economic Growth In The Petroleum Exporting Countries," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 35(3), pages 81-102, September.
    3. P Ekins, 1997. "The Kuznets Curve for the Environment and Economic Growth: Examining the Evidence," Environment and Planning A, , vol. 29(5), pages 805-830, May.
    4. Philippe Aghion, 2005. "Growth and Institutions," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 32(1), pages 3-18, March.
    5. Cole, M.A. & Rayner, A.J. & Bates, J.M., 1997. "The environmental Kuznets curve: an empirical analysis," Environment and Development Economics, Cambridge University Press, vol. 2(4), pages 401-416, November.
    6. Tol, Richard S.J., 2005. "Emission abatement versus development as strategies to reduce vulnerability to climate change: an application of FUND," Environment and Development Economics, Cambridge University Press, vol. 10(5), pages 615-629, October.
    7. Selden Thomas M. & Song Daqing, 1994. "Environmental Quality and Development: Is There a Kuznets Curve for Air Pollution Emissions?," Journal of Environmental Economics and Management, Elsevier, vol. 27(2), pages 147-162, September.
    8. Stephen Knack & Philip Keefer, 1995. "Institutions And Economic Performance: Cross‐Country Tests Using Alternative Institutional Measures," Economics and Politics, Wiley Blackwell, vol. 7(3), pages 207-227, November.
    9. Welsch, Heinz, 2004. "Corruption, growth, and the environment: a cross-country analysis," Environment and Development Economics, Cambridge University Press, vol. 9(5), pages 663-693, October.
    10. Acemoglu, Daron & Johnson, Simon & Robinson, James A., 2005. "Institutions as a Fundamental Cause of Long-Run Growth," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 6, pages 385-472, Elsevier.
    11. Jinyoung Hwang, 2002. "A Note On The Relationship Between Corruption And Government Revenue," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 27(2), pages 161-177, December.
    12. Gene M. Grossman & Alan B. Krueger, 1995. "Economic Growth and the Environment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(2), pages 353-377.
    13. Paolo Mauro, 2004. "The Persistence of Corruption and Slow Economic Growth," IMF Staff Papers, Palgrave Macmillan, vol. 51(1), pages 1-1.
    14. Olson, Mancur, Jr & Sarna, Naveen & Swamy, Anand V, 2000. "Governance and Growth: A Simple Hypothesis Explaining Cross-Country Differences in Productivity Growth," Public Choice, Springer, vol. 102(3-4), pages 341-364, March.
    15. Dietz, Simon & Neumayer, Eric & De Soysa, Indra, 2007. "Corruption, the resource curse and genuine saving," Environment and Development Economics, Cambridge University Press, vol. 12(1), pages 33-53, February.
    16. Paul Makdissi & Quentin Wodon, 2006. "Environmental Regulation And Economic Growth Under Education Externalities," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 31(1), pages 45-51, June.
    17. Esty, Daniel C. & Porter, Michael E., 2005. "National environmental performance: an empirical analysis of policy results and determinants," Environment and Development Economics, Cambridge University Press, vol. 10(4), pages 391-434, August.
    18. William T. Harbaugh & Arik Levinson & David Molloy Wilson, 2002. "Reexamining The Empirical Evidence For An Environmental Kuznets Curve," The Review of Economics and Statistics, MIT Press, vol. 84(3), pages 541-551, August.
    19. Maria M. Wihardja, 2010. "Corruption In Public Procurement Auctions: Positive Equilibrium Analysis, Incentive Mechanism Design, And Empirical Study," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 35(1), pages 35-57, March.
    20. Akbostanci, Elä°F & Tunã‡, G. Ä°Pek & Tãœrãœt-Aåžik, Serap, 2007. "Pollution haven hypothesis and the role of dirty industries in Turkey's exports," Environment and Development Economics, Cambridge University Press, vol. 12(2), pages 297-322, April.
    21. Safavian, Mehnaz S. & Graham, Douglas H. & Gonzalez-Vega, Claudio, 2001. "Corruption and Microenterprises in Russia," World Development, Elsevier, vol. 29(7), pages 1215-1224, July.
    22. Pushak, Taras & Tiongson, Erwin R. & Varoudakis, Aristomene, 2007. "Public finance, governance, and growth in transition economies : empirical evidence from 1992-2004," Policy Research Working Paper Series 4255, The World Bank.
    23. Fischer, Stanley & Alonso-Gamo, Patricia & Erickson von Allmen, Ulric, 2001. "Economic Developments in the West Bank and Gaza since Oslo," Economic Journal, Royal Economic Society, vol. 111(472), pages 254-275, June.
    24. Esty, Daniel C. & Porter, Michael E., 2005. "National environmental performance: an empirical analysis of policy results and determinants," Environment and Development Economics, Cambridge University Press, vol. 10(4), pages 381-389, August.
    25. Aron, Janine, 2000. "Growth and Institutions: A Review of the Evidence," The World Bank Research Observer, World Bank, vol. 15(1), pages 99-135, February.
    26. Komen, Marinus H.C. & Gerking, Shelby & Folmer, Henk, 1997. "Income and environmental R&D: empirical evidence from OECD countries," Environment and Development Economics, Cambridge University Press, vol. 2(4), pages 505-515, November.
    27. Joysri Acharyya, 2009. "Fdi, Growth And The Environment: Evidence From India On Co2 Emission During The Last Two Decades," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 34(1), pages 43-58, June.
    28. Friedl, Birgit & Getzner, Michael, 2003. "Determinants of CO2 emissions in a small open economy," Ecological Economics, Elsevier, vol. 45(1), pages 133-148, April.
    29. Ebru Guven Solakoglu, 2007. "The Effect of Property Rights on the Relationship Between Economic Growth and Pollution for Transition Economies," Eastern European Economics, Taylor & Francis Journals, vol. 45(1), pages 77-94, February.
    30. Dasgupta, Partha & Shyamsundar, Priya & Mã„Ler, Karl-Gã–Ran, 2004. "The economics of environmental change and pollution management – issues and approaches from South Asia," Environment and Development Economics, Cambridge University Press, vol. 9(1), pages 9-18, February.
    31. Shafik, Nemat, 1994. "Economic Development and Environmental Quality: An Econometric Analysis," Oxford Economic Papers, Oxford University Press, vol. 46(0), pages 757-773, Supplemen.
    32. Mendelsohn, Robert & Dinar, Ariel & Williams, Larry, 2006. "The distributional impact of climate change on rich and poor countries," Environment and Development Economics, Cambridge University Press, vol. 11(2), pages 159-178, April.
    33. Mariano Torras, 2005. "Income and Power Inequality as Determinants of Environmental and Health Outcomes: Some Findings," Social Science Quarterly, Southwestern Social Science Association, vol. 86(s1), pages 1354-1376, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Abid, Mehdi, 2016. "Impact of economic, financial, and institutional factors on CO2 emissions: Evidence from Sub-Saharan Africa economies," Utilities Policy, Elsevier, vol. 41(C), pages 85-94.
    2. Dinda, Soumyananda, 2004. "Environmental Kuznets Curve Hypothesis: A Survey," Ecological Economics, Elsevier, vol. 49(4), pages 431-455, August.
    3. Ranganathan, Shyam & Bali Swain, Ranjula, 2014. "Analysing Mechanisms for Meeting Global Emissions Target - A Dynamical Systems Approach," Working Paper Series 2014:10, Uppsala University, Department of Economics.
    4. Marzio Galeotti, 2007. "Economic Growth And The Quality Of The Environment: Taking Stock," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 9(4), pages 427-454, November.
    5. Jie He, 2007. "Is the Environmental Kuznets Curve hypothesis valid for developing countries? A survey," Cahiers de recherche 07-03, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.
    6. Stern, David I., 2004. "The Rise and Fall of the Environmental Kuznets Curve," World Development, Elsevier, vol. 32(8), pages 1419-1439, August.
    7. He, Jie & Richard, Patrick, 2010. "Environmental Kuznets curve for CO2 in Canada," Ecological Economics, Elsevier, vol. 69(5), pages 1083-1093, March.
    8. Le Hoang Phong & Dang Thi Bach Van & Ho Hoang Gia Bao, 2018. "The Role of Globalization on CO2 Emission in Vietnam Incorporating Industrialization, Urbanization, GDP per Capita and Energy Use," International Journal of Energy Economics and Policy, Econjournals, vol. 8(6), pages 275-283.
    9. Sapkota, Pratikshya & Bastola, Umesh, 2017. "Foreign direct investment, income, and environmental pollution in developing countries: Panel data analysis of Latin America," Energy Economics, Elsevier, vol. 64(C), pages 206-212.
    10. Tetsuya Tsurumi & Shunsuke Managi, 2010. "Decomposition of the environmental Kuznets curve: scale, technique, and composition effects," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 11(1), pages 19-36, February.
    11. Theodore Panayotou, 2000. "Economic Growth and the Environment," CID Working Papers 56A, Center for International Development at Harvard University.
    12. Lee, Chien-Chiang & Chiu, Yi-Bin & Sun, Chia-Hung, 2010. "The environmental Kuznets curve hypothesis for water pollution: Do regions matter?," Energy Policy, Elsevier, vol. 38(1), pages 12-23, January.
    13. Aller, Carlos & Ductor, Lorenzo & Grechyna, Daryna, 2021. "Robust determinants of CO2 emissions," Energy Economics, Elsevier, vol. 96(C).
    14. He, Jie & Wang, Hua, 2012. "Economic structure, development policy and environmental quality: An empirical analysis of environmental Kuznets curves with Chinese municipal data," Ecological Economics, Elsevier, vol. 76(C), pages 49-59.
    15. Biswas, Amit K. & Farzanegan, Mohammad Reza & Thum, Marcel, 2012. "Pollution, shadow economy and corruption: Theory and evidence," Ecological Economics, Elsevier, vol. 75(C), pages 114-125.
    16. Matthew A. Cole & Andrea Lucchesi, 2014. "Economic growth and the environment," Chapters, in: Giles Atkinson & Simon Dietz & Eric Neumayer & Matthew Agarwala (ed.), Handbook of Sustainable Development, chapter 16, pages 252-266, Edward Elgar Publishing.
    17. Begum, Rawshan Ara & Sohag, Kazi & Abdullah, Sharifah Mastura Syed & Jaafar, Mokhtar, 2015. "CO2 emissions, energy consumption, economic and population growth in Malaysia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 41(C), pages 594-601.
    18. Sabrina Auci & Giovanni Trovato, 2018. "The environmental Kuznets curve within European countries and sectors: greenhouse emission, production function and technology," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 35(3), pages 895-915, December.
    19. Sinha, Avik & Bhattacharya, Joysankar, 2017. "Estimation of environmental Kuznets curve for SO2 emission: A case of Indian cities," MPRA Paper 100009, University Library of Munich, Germany.
    20. Marzio Galeotti, 2003. "Economic Development and Environmental Protection," Working Papers 2003.89, Fondazione Eni Enrico Mattei.

    More about this item

    Keywords

    Carbon Dioxide; Emissions; Governance; Developing Countries; Regulation;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O50 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - General
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q59 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Other

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jed:journl:v:37:y:2012:i:1:p:77-93. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sung Y. Park (email available below). General contact details of provider: https://edirc.repec.org/data/eccaukr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.