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Governance and Carbon Dioxide Emissions: The Mediating Role of Mitigation Finance in Developing Countries

Author

Listed:
  • Astrid Yamila Loré Acosta

    (Inha University, Republic of Korea)

  • Hyun Jeong Kim

    (Inha University, Republic of Korea)

Abstract

Using panel data and a mediation framework, this study explores the indirect and direct impact of governance dimension on carbon emissions and its indirect effects through mitigation finance in developing countries. The results demonstrate a heterogenous effects of the governance dimensions, regulatory quality associated with lower emissions and greater mitigation finance, with other dimensions linked to increased carbon emissions. These findings highlight the trade-offs between government development and economic growth, particularly when they are not aligned with environmental objectives. Overall, this study underscores the role of regulatory quality in shaping emissions reduction and mitigation finance allocation.

Suggested Citation

  • Astrid Yamila Loré Acosta & Hyun Jeong Kim, 2026. "Governance and Carbon Dioxide Emissions: The Mediating Role of Mitigation Finance in Developing Countries," Journal of Economic Development, The Economic Research Institute, Chung-Ang University, vol. 51(1), pages 145-162, March.
    • Handle: RePEc:ris:jecdev:022432
    DOI: 10.35866/caujed.2026.51.1.006
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    JEL classification:

    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • 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
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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