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Institutional quality and CO2 emission-output relations: The case of Asian countries.
- Source :
-
Journal of environmental management [J Environ Manage] 2021 Feb 01; Vol. 279, pp. 111569. Date of Electronic Publication: 2020 Nov 13. - Publication Year :
- 2021
-
Abstract
- Although Asian economies have registered strong economic growth over the last few decades, their growing pollution emissions raise concerns among the policymakers about the sustainability of this output growth. This paper tests the causal relationship between economic development, energy consumption, trade openness, financial development, FDI, government expenditures, institutional quality. and pollution emissions for 41 Asian economies from 1996 to 2015. Further, we separately test the impact of political and economic institutions on pollution emissions of the sample economies. Our estimated outcomes, based on the panel cointegration method and panel vector error correction models (VECM), substantiate the presence of a cointegration relationship among all the selected variables. While economic development, energy use, trade openness, and FDI augment environmental degradation, financial development and better economic institutions help the selected countries in reducing their pollution emissions. Moreover, better economic and political institutions also mediate the adverse impact of income, trade openness, and FDI on pollution emissions. The VECM model shows that per capita GDP is the only variable having a causal effect on pollution emissions in all the models. For all the other variables, the causal effect is significant only in a few cases. These outcomes have some important policy recommendations for the sample economies.<br /> (Copyright © 2020 Elsevier Ltd. All rights reserved.)
Details
- Language :
- English
- ISSN :
- 1095-8630
- Volume :
- 279
- Database :
- MEDLINE
- Journal :
- Journal of environmental management
- Publication Type :
- Academic Journal
- Accession number :
- 33190973
- Full Text :
- https://doi.org/10.1016/j.jenvman.2020.111569