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Institutional determinants of environmental pollution in Russia: a non-linear ARDL approach

Author

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  • Dmitry Burakov

    (Moscow State Institute of International Relations, Russian Federation)

  • Alexander Bass

    (Financial University under the Government of the Russian Federation, Russian Federation)

Abstract

This paper aims to examine how institutional factors affect carbon dioxide emission in case of Russia with an emphasis on the asymmetrical effects of corruption. Institutional factors include corruption perception in the sampled economy and income inequality. The study deploys a non-linear autoregressive distributed-lagged approach to the hypothesis testing. Using the data for the period 1996-2018 of the sampled factors, affecting carbon dioxide emission in Russia, we aim to find the existence of the cointegration between the variables and determine the existence of the asymmetrical effects. In the results of the empirical investigation it was found that carbon dioxide emissions, corruption and income inequality in Russia are cointegrated. In both the long and short run, positive shocks in corruption increase environmental degradation in Russia. A 1% increase in corruption leads to a 0.13% and 0.17% rise in CO2 emission in the short and long run respectively under 5% significance level. Income inequality is found to be a statistically insignificant determinant of carbon dioxide emission in Russia.

Suggested Citation

  • Dmitry Burakov & Alexander Bass, 2019. "Institutional determinants of environmental pollution in Russia: a non-linear ARDL approach," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(1), pages 510-524, September.
    • Handle: RePEc:ssi:jouesi:v:7:y:2019:i:1:p:510-524
    DOI: 10.9770/jesi.2019.7.1(36)
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    Cited by:

    1. Carmen C. Rodríguez-Martínez & Isabel María García-Sánchez & Purificación Vicente-Galindo & Purificación Galindo-Villardón, 2019. "Exploring Relationships between Environmental Performance, E-Government and Corruption: A Multivariate Perspective," Sustainability, MDPI, vol. 11(22), pages 1-16, November.
    2. Natalia Davidson & Oleg Mariev & Sophia Turkanova, 2021. "Does income inequality matter for CO2 emissions in Russian regions?," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 16(3), pages 533-551, September.

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    Keywords

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    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • 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

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