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Are autocracies bad for the environment? Global evidence from two centuries of data

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Listed:
  • Apra Sinha
  • Ashish Kumar Sedai
  • Abhishek Kumar
  • Rabindra Nepal

Abstract

This study examines the effects of the rule of law on carbon-dioxide emissions using a large sample of countries for over a century. In principle, the turning point of the Environmental Kuznets Curve (EKC) is compared for a range of countries lying between autocracy and democracy. Using decadal data for 220 years (1790-2010) and 150 countries, we use country fixed effects estimation technique to quantify the absolute and interactive effects of autocracy-democracy index on carbon-dioxide emissions. Results show that democracies emit less carbon-dioxide for one unit increase in per-capita income, leading to lower turning point and thus lower emission. The turning point in case of autocracies are more than twice of the turning point for democracies. Electoral autocracies have lower turning point in comparison to closed autocracies. Point estimates are robust to alternative estimation techniques and are not likely to be influenced by omitted variable biases. Strengthening rule enforcement and improving access to justice can be critical in decreasing carbon-dioxide emissions.

Suggested Citation

  • Apra Sinha & Ashish Kumar Sedai & Abhishek Kumar & Rabindra Nepal, 2021. "Are autocracies bad for the environment? Global evidence from two centuries of data," CAMA Working Papers 2021-24, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
    • Handle: RePEc:een:camaaa:2021-24
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    File URL: https://cama.crawford.anu.edu.au/sites/default/files/publication/cama_crawford_anu_edu_au/2021-02/24_2021_sinha_sedai_kumar_nepal.pdf
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    References listed on IDEAS

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    1. Shafik, Nemat & Bandyopadhyay, Sushenjit, 1992. "Economic growth and environmental quality : time series and cross-country evidence," Policy Research Working Paper Series 904, The World Bank.
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    3. Abid Rashid Gill & Sallahuddin Hassan & K Kuperan Viswanathan, 2019. "Is democracy enough to get early turn of the environmental Kuznets curve in ASEAN countries?," Energy & Environment, , vol. 30(8), pages 1491-1505, December.
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    More about this item

    Keywords

    EKC; Turning Point; Rule of law; Democracy; Autocracy;
    All these keywords.

    JEL classification:

    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • 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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