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Institutions and the effectiveness of expenditures on environmental protection: evidence from Middle Eastern countries

Author

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  • Hassan F. Gholipour

    (Swinburne Business School, Swinburne University of Technology)

  • Mohammad Reza Farzanegan

    (Philipps-University of Marburg, Center for Near and Middle Eastern Studies (CNMS), Economics of the Middle East Research Group
    CESifo
    Marburg Centre for Institutional Economics (MACIE))

Abstract

Middle Eastern countries are among the top air emitters in per capita terms worldwide. We examine the effect of government expenditures on environmental protection (GEEP) on air pollution in the Middle East and North Africa (MENA) countries. Moreover, we explore whether countries with stronger quality of governance can exploit GEEP to reduce air pollution more efficiently. Empirical analysis, using data from 1996 to 2015 for a set of the MENA countries, shows that GEEP alone does not play a significant role in contributing to better environmental quality. However, improvements in quality of governance are shaping the final environmental effects of GEEP in the MENA region. Our results can help policy makers in the region and international community in discovering strategies for reaching the agreed goals under the Paris Climate Deal (COP21), namely net zero emissions in the second half of the century.

Suggested Citation

  • Hassan F. Gholipour & Mohammad Reza Farzanegan, 2018. "Institutions and the effectiveness of expenditures on environmental protection: evidence from Middle Eastern countries," Constitutional Political Economy, Springer, vol. 29(1), pages 20-39, March.
    • Handle: RePEc:kap:copoec:v:29:y:2018:i:1:d:10.1007_s10602-017-9246-x
    DOI: 10.1007/s10602-017-9246-x
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    6. Shazia Kousar & Farhan Ahmed & María de las Nieves López García & Nimra Ashraf, 2020. "Renewable Energy Consumption, Water Crises, and Environmental Degradation with Moderating Role of Governance: Dynamic Panel Analysis under Cross-Sectional Dependence," Sustainability, MDPI, vol. 12(24), pages 1-16, December.
    7. Asma Awan & Sidra Nawaz, 2022. "Towards Green Growth: Monitoring Progress and Investigating Its Determinants in South Asia," Journal of Economic Impact, Science Impact Publishers, vol. 4(3), pages 252-264.
    8. Usama Al-Mulali & Hassan F. Gholipour & Sakiru Adebola Solarin, 2022. "Investigating the environmental Kuznets curve (EKC) hypothesis: does government effectiveness matter? Evidence from 170 countries," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(11), pages 12740-12755, November.
    9. Arrouna Keita & Camelia Turcu, 2020. "Natural Resource Discoveries and Fiscal Discipline," Working Papers 2020.07, International Network for Economic Research - INFER.
    10. Taner Akan & Halil İbrahim Gündüz & Tara Vanlı & Ahmet Baran Zeren & Ali Haydar Işık & Tamerlan Mashadihasanli, 2023. "Why are some countries cleaner than others? New evidence from macroeconomic governance," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(7), pages 6167-6223, July.
    11. Mozhgan Asna-ashary & Mohammad Reza Farzanegan & Mehdi Feizi & Saeed Malek Sadati, 2020. "COVID-19 Outbreak and Air Pollution in Iran: A Panel VAR Analysis," MAGKS Papers on Economics 202016, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    12. Mohammad Reza Farzanegan & Mehdi Feizi & Hassan F. Gholipour, 2019. "Drought and Property Prices: Empirical Evidence from Iran," MAGKS Papers on Economics 201916, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    13. Farzanegan, Mohammad Reza & Markwardt, Gunther, 2018. "Development and pollution in the Middle East and North Africa: Democracy matters," Journal of Policy Modeling, Elsevier, vol. 40(2), pages 350-374.
    14. Chun-Ping Chang & Minyi Dong & Jiliang Liu, 2019. "Environmental Governance and Environmental Performance," Working Papers id:13023, eSocialSciences.
    15. Haiqing Hu & Di Chen & Chun‐Ping Chang & Yin Chu, 2021. "The Political Economy Of Environmental Consequences: A Review Of The Empirical Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 35(1), pages 250-306, February.
    16. Farzanegan, Mohammad Reza & Hassan, Mai & Badreldin, Ahmed Mohamed, 2020. "Economic liberalization in Egypt: A way to reduce the shadow economy?," Journal of Policy Modeling, Elsevier, vol. 42(2), pages 307-327.
    17. Sven Fischer, 2021. "Post-Disaster Spillovers: Evidence from Iranian Provinces," JRFM, MDPI, vol. 14(5), pages 1-26, April.
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    More about this item

    Keywords

    Air pollution; Government expenditures; Quality of governance; MENA;
    All these keywords.

    JEL classification:

    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies

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