Economic Impact of Institutional Quality on Environmental Performance in Post-Soviet Countries
DOI:
https://doi.org/10.14665/1614-4007-27-2-002Keywords:
Panel GMM, Industrialization, UrbanizationAbstract
Maintaining the balance between economic growth and environmental performance is a new trend of challenges for developing countries. The economic impact of institutional quality on environmental performance is analyzed from 2001 to 2017 using multinational panel data for 15 Post Soviet-Countries. The indicators of institutional quality are government effectiveness and regulatory quality and this research is first of its kind utilizing a comprehensive Environmental Performance Index as an empirical paper for post-Soviet-Countries. This study has utilized an instrumental variable method in Generalized Method of Moments, in order to introduce dynamics and then check for endogeneity. Other controlling factors include GDP per capita, industrial manufacturing, energy efficiency, urbanization, and secondary education. The results indicate that institutional quality have a significant positive impact on environmental performance. It is suggested that the post-Soviet-Countries must ensure better institutions in order to sustain an environment for future generations.
Downloads
References
Anwar, A., Sarwar, S., Amin, W., & Arshed, N. (2019). Agricultural practices and quality of environment: evidence for global perspective. Environmental Science and Pollution Research, 26(15), 15617-15630.
Apergis, N., & Ozturk, I. (2015). Testing environmental Kuznets curve hypothesis in Asian countries. Ecological Indicators, 52, 16-22.
Arellano, M., & Bond, S. (1991). Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. The review of economic studies, 58(2), 277-297.
Bacot, A. H., & Dawes, R. A. (1997). State expenditures and policy outcomes in environmental program management. Policy Studies Journal, 25(3), 355-370.
Bättig, M. B., & Bernauer, T. (2009). National institutions and global public goods: are democracies more cooperative in climate change policy? International organization, 63(2), 281-308.
Bernauer, T., & Koubi, V. (2013). Are bigger governments better providers of public goods? Evidence from air pollution. Public Choice, 156(3-4), 593-609.
Cole, M. A., Elliott, R. J., & Shimamoto, K. (2005). Industrial characteristics, environmental regulations and air pollution: an analysis of the UK manufacturing sector. Journal of environmental economics and management, 50(1), 121-143.
Dasgupta, S., Mody, A., Roy, S., & Wheeler, D. (2001) Environmental Regulation and Development: A Cross-country Empirical Analysis. Oxford Development Studies, 29, no. 2, 173-87. Accessed November 16, 2018.
Dasgupta, S., Laplante, B., Wang, H., & Wheeler, D. (2002). Confronting the environmental Kuznets curve. Journal of economic perspectives, 16(1), 147-168.
Dasgupta, S., Deichmann, U., Meisner, C., & Wheeler, D. (2005). Where is the poverty–Environment nexus? Evidence from Cambodia, Lao PDR, and Vietnam. World Development, 33(4), 617-638.
Dasgupta, S., Hamilton, K., Pandey, K. D., & Wheeler, D. (2006). Environment during growth: accounting for governance and vulnerability. World development, 34(9), 1597-1611.
Emerson, J., Esty, D. C., Levy, M. A., Kim, C. H., Mara, V., de Sherbinin, A., & Srebotnjak, T. (2010). Environmental performance index. New Haven: Yale Center for Environmental Law and Policy, 87.
Environmental Performance Index (EPI). (2018) “Environmental Performance Index”. Accessed May 05, 2018. https://epi.envirocenter.yale.edu/.
Esty, D. C., & Porter, M. E. (2005). National environmental performance: an empirical analysis of policy results and determinants. Environment and development economics, 10(4), 391-434.
Esty, D. C. (2008). Rethinking global environmental governance to deal with climate change: The multiple logics of global collective action. American Economic Review, 98(2), 116-21.
Garmann, S. (2014). Do government ideology and fragmentation matter for reducing CO2-emissions? Empirical evidence from OECD countries. Ecological Economics, 105, 1-10.
Grossman, G. M., & Krueger, A. B. (1995). Economic growth and the environment. The quarterly journal of economics, 110(2), 353-377.
Gujarati, D. (2004). Basic econometrics. The Mc-Graw Hill.
Hanley, N. D., McGregor, P. G., Swales, J. K., & Turner, K. (2006). The impact of a stimulus to energy efficiency on the economy and the environment: A regional computable general equilibrium analysis. Renewable Energy, 31(2), 161-171.
Holzinger, K., Knill, C., & Sommerer, T. (2011). Is there convergence of national environmental policies? An analysis of policy outputs in 24 OECD countries. Environmental politics, 20(1), 20-41.
Inglehart, R. (1995). Public support for environmental protection: Objective problems and subjective values in 43 societies. PS: Political Science & Politics, 28(1), 57-72.
King, R. F., & Borchardt, A. (1994). Red and green: air pollution levels and left party power in OECD countries. Environment and Planning C: Government and Policy, 12(2), 225-241.
Konisky, D. M., Milyo, J., & Richardson, L. E. (2008). Environmental policy attitudes: Issues, geographical scale, and political trust. Social Science Quarterly, 89(5), 1066-1085.
Liu, X., Vedlitz, A., & Shi, L. (2014). Examining the determinants of public environmental concern: Evidence from national public surveys. Environmental Science & Policy, 39, 77-94.
NASA. (2018). Climate Change: Vital Signs of the Planet. NASA. Accessed November 20, 2018. https://climate.nasa.gov/.
Neumayer, E. (2003). Are left-wing party strength and corporatism good for the environment? Evidence from panel analysis of air pollution in OECD countries. Ecological economics, 45(2), 203-220.
Neumayer, E. (2004). The environment, left-wing political orientation and ecological economics. Ecological economics, 51(3-4), 167-175.
Scruggs, L. (2003). Sustaining abundance: Environmental performance in industrial democracies. Cambridge University Press.
Shahbaz, M., Sbia, R., Hamdi, H., & Ozturk, I. (2014). Economic growth, electricity consumption, urbanization and environmental degradation relationship in United Arab Emirates. Ecological Indicators, 45, 622-631.
Solesbury, W. (1976). Issues and innovations in environmental policy in Britain, West Germany, and California. Policy Analysis, 2(1), 1.
Stiglitz, J. (2002). Globalization and its discontents. Penguin Books. New York, Page 223. Accessed May 6, 2018
Victor, P. A. (2008). Managing without growth: slower by design, not disaster. Edward Elgar Publishing.
Wen, J., Hao, Y., Feng, G. F., & Chang, C. P. (2016). Does government ideology influence environmental performance? Evidence based on a new dataset. Economic Systems, 40(2), 232-246. Accessed May 5, 2018.doi:10.1016/j.ecosys.2016.04.001.https://onlinelibrary.wiley.com/doi/abs/10.1111/j.1467-9299.1976.tb00256.x
World Bank. (2018). “Environment”. Accessed November 22, 2018. https://www.worldbank.org/en/topic/environment.
University of Chicago. (2015). Why Environmental Quality is Poor in Developing Countries: A Primer. (2015, May 26). Retrieved from https://epic.uchicago.edu/news-events/news/why-environmental-quality-poor-developing-countries-primer
Published
How to Cite
Issue
Section
The author gives permission to Transition Academia Press to publish the article in print and/or electronic format.
If/when an article is accepted for publication, Author will be asked to transfer copyright of the article to Transition Academia Press. Transition Academia Press will retain copyright of all published material and reserves the right to re-use any such material in any print and/or electronic format. Author willing to retain their copyright from the Editors might request a fair condition, on the base of a bilateral agreement.
