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Institutions and the Environment: Existing Evidence and Future Directions

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  • Shouro Dasgupta

    (Fondazione Eni Enrico Mattei and Centro Euro-Mediterraneo sui Cambiamenti Climatici)

  • Enrica De Cian

    (Fondazione Eni Enrico Mattei and Centro Euro-Mediterraneo sui Cambiamenti Climatici)

Abstract

In this review we synthetize the existing contributions that use econometric approaches to examine the influence of institutions and governance on environmental policy, environmental outcomes, and investments. The paper describes how the relationship between institutions and various response variables related to environmental performance and environmental policy have been conceptualized and operationalized in the literature, and it summarizes the main findings. The second part of the paper outlines avenues for future research in the specific context of energy and climate change. We identify various opportunities for empirical work that have recently emerged with the growing availability of data in the field of green investments, climate, and energy policy. Expanding the current empirical literature towards these research topics is of scientific and policy relevance, and can provide important insights on the broader field of sustainability transition and sustainable development.

Suggested Citation

  • Shouro Dasgupta & Enrica De Cian, 2016. "Institutions and the Environment: Existing Evidence and Future Directions," Working Papers 2016.41, Fondazione Eni Enrico Mattei.
    • Handle: RePEc:fem:femwpa:2016.41
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    3. Stephane Dées, 2020. "Assessing the Role of Institutions in Limiting the Environmental Externalities of Economic Growth," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 76(2), pages 429-445, July.
    4. Donatella Baiardi & Simona Scabrosetti, 2020. "Does the quality of political institutions matter for the effectiveness of environmental taxes? An empirical analysis on CO2 emissions," Working Paper series 20-25, Rimini Centre for Economic Analysis.
    5. Donatella Baiardi & Simona Scabrosetti, 2020. "Does the quality of political institutions matter for the effectiveness of environmental taxes? An empirical analysis on CO2 emissions," Working papers 92, Società Italiana di Economia Pubblica.
    6. Lucas Bretschger & Karen Pittel, 2019. "Twenty Key Questions in Environmental and Resource Economics," CER-ETH Economics working paper series 19/328, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.

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    More about this item

    Keywords

    Institutions; Environmental Performance; Environmental Policy; Investments;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q00 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - General
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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