Advertisement

Environmental Science and Pollution Research

, Volume 25, Issue 31, pp 31459–31473 | Cite as

Modelling the relationship between poverty, environment, and institutions: a panel data study

  • Reham Rizk
  • Mehdi Ben Slimane
Research Article

Abstract

The paper examines the relationship between poverty and CO2 emission. We contribute by using a global panel data of 146 countries over the period 1996–2014 and by focusing on the role of institution in poverty and environmental degradation nexus. The main findings are that the non-linearity relationship between poverty and CO2 emission could prompt a further increase in the poverty and environmental degradation. However, an increase in the institutional quality leads to a reduction in poverty and more protection to the environment. The main policy recommendation is that all countries need to improve their institutional framework so that reduction of poverty and environmental degradation can occur.

Keywords

Poverty CO2 Institution quality Panel data 

JEL classification

O13 Q53 Q56 C33 

References

  1. Abid M (2016) Impact of economic, financial, and institutional factors on CO2 emissions: evidence from sub-Saharan Africa economies. Util Pol 41:85–94CrossRefGoogle Scholar
  2. Abou-ali H, Abdelfattah YM (2013) Integrated paradigm for sustainable development : a panel data study. Econ Model 30:334–342CrossRefGoogle Scholar
  3. Acemoğlu D, Johnson S, Robinson JA (2001) The colonial origins of comparative development: an empirical investigation. Am Econ Rev 91(5):1369–1401CrossRefGoogle Scholar
  4. Acemoğlu D, Johnson S, Robinson JA (2005) Chapter 6: institutions as a fundamental cause of long-run growth, In: Philippe Aghion and Steven N. Durlauf, editor(s), Handbook of economic growth, Elsevier, vol 1 part a, 385–472Google Scholar
  5. Acemoğlu D, Robinson JA (2011) Why nations fail: the origins of power, prosperity and poverty. Crown Publishing Group, LondonGoogle Scholar
  6. Aron J (2000) Growth and institutions: a review of the evidence. World Bank Res Obs 15(1):99–135CrossRefGoogle Scholar
  7. Atkinson G & Hamilton K (2003) Savings, growth and the resource curse hypothesis. World development 31(11):1793–1807CrossRefGoogle Scholar
  8. Barnes DF, Krutilla K, Hyde W (2005) The urban household energy transition: social and environmental impacts in the developing world. Resources for the Future S, RoutledgeGoogle Scholar
  9. Burton E (2000) The compact city: just or just compact? A preliminary analysis. Urban Stud 37(11):1969–2006CrossRefGoogle Scholar
  10. Capello R, Camagni R (2000) Beyond optimal city size: an evaluation of alternative urban growth patterns. Urban Stud 37(9):1479–1496CrossRefGoogle Scholar
  11. Cavendish W (2000) Empirical regularities in the poverty-environment relationship of rural households: evidence from Zimbabwe. World Dev 28(11):1979–2003CrossRefGoogle Scholar
  12. Chong A, Gradstein M (2007) Inequality and institutions. Rev Econ Stat 89(3):454–465CrossRefGoogle Scholar
  13. Cole M (2007) Corruption, income and the environment: an empirical analysis. Ecol Econ 62:637–647CrossRefGoogle Scholar
  14. Cole M, Neumayer E (2004) Examining the impact of demographic factors on air pollution. Popul Environ 26(1):5–21CrossRefGoogle Scholar
  15. Costantini V, Monni S (2008) Environment, human development and economic growth. Ecol Econ 64:867–880CrossRefGoogle Scholar
  16. Culas RJ (2007) Deforestation and the environmental Kuznets curve: an institutional perspective. Ecol Econ 61:429–437CrossRefGoogle Scholar
  17. Davidson R & MacKinnon JG (1993) Estimation and inference in econometrics. OUP Catalogue.Google Scholar
  18. Dinda S (2004) Environmental Kuznets curve hypothesis: a survey. Ecol Econ 49:431–455CrossRefGoogle Scholar
  19. Duraiappah AK (1998) Poverty and environmental degradation: a review and analysis of the nexus. World Dev 26(12):2169–2179CrossRefGoogle Scholar
  20. Ebenstein A (2012) The consequences of industrialization: evidence from water pollution and digestive cancers in China. Rev Econ Stat 94(1):186–201CrossRefGoogle Scholar
  21. Fan Y, Liu L-C, Wu G, Wei Y-M (2006) Analyzing impact factors of CO2 emissions using the STIRPAT model. Environ Impact Assess Rev 26(4):377–395CrossRefGoogle Scholar
  22. Farzin YH, Bond CA (2006) Democracy and environmental quality. J Dev Econ 81:213–235CrossRefGoogle Scholar
  23. Gagliardi F (2008) Institutions and economic change: a critical survey of the new institutional approaches and empirical evidence. J Soc Econ 37:416–443CrossRefGoogle Scholar
  24. Grindle MS (2004) Good enough governance: poverty reduction and reform in developing countries. Governance 17(4):525–548CrossRefGoogle Scholar
  25. Grossman G, Krueger AB (1991) Environmental impacts of a north American free trade agreement. National Bureau of Economic Research Working Paper Series, No 3914:1–57Google Scholar
  26. Holtz-Eakin D, Selden T (1995) Stoking the fires? CO 2 emissions and economic growth. J Publ Econ 57:85–101CrossRefGoogle Scholar
  27. Isham J, Woolcock M, Pritchett L, Busby G (2005) The varieties of resource experience: natural resource export structures and the political economy of economic growth. World Bank Econ Rev 19(2):141–174CrossRefGoogle Scholar
  28. Jalal K (1993) Sustainable development, environment and poverty nexus. Asian Development BankGoogle Scholar
  29. Jodha N (1998) Poverty and environmental resource degradation: an alternative explanation and possible solutions. Econ Polit Wkly 33(36/37):2384–2390Google Scholar
  30. Judge G, Griffiths WE, Hill RC, Lutkepohl H, Lee T-C (1985) The theory and practice of econometrics, 2nd edn. Wiley, New York, pp 477–478Google Scholar
  31. Kaiser HF (1960) The application of electronic computers to factor analysis. Educ Psychol Meas 20:141–151CrossRefGoogle Scholar
  32. Kaufmann D, Kraay A, Mastruzzi M (2004) Governance matters III : governance indicators for 1996, 1998, 2000, and 2002. World Bank Econ Rev 18(2):253–287CrossRefGoogle Scholar
  33. Kelly TJ, wa Gîthînji M (1994) Enviromental degradation and poverty in less industrialized nations. Frontera Norte, (77–90)Google Scholar
  34. Khan SR, Khan SR (2009) Assessing poverty-deforestation links: evidence from swat, Pakistan. Ecol Econ 68:2607–2618CrossRefGoogle Scholar
  35. Kraay A, Mastruzzi M, Kaufmann D (2003) Governance Matters III: Governance Indicators for 1996–2002. Informe de investigación No. WPS, 3106Google Scholar
  36. Kwon HJ, Kim E (2014) Poverty reduction and good governance: examining the rationale of the millennium development goals. Dev Change 45(2):353–375CrossRefGoogle Scholar
  37. Lau L-S, Choong C-K, Eng Y-K (2014) Carbon dioxide emission, institutional quality, and economic growth: empirical evidence in Malaysia. Renew Energ 68:276–281CrossRefGoogle Scholar
  38. Leach M, Mearns R, Scoones I (1999) Environmental entitlements: dynamics and institutions in community-based natural resource management. World Dev 27(2):225–247CrossRefGoogle Scholar
  39. Leitão A (2010) Corruption and the environmental Kuznets curve: empirical evidence for sulfur. Ecol Econ 69(11):2191–2201CrossRefGoogle Scholar
  40. Lélé SM (1991) Sustainable development: a critical review. World Dev 19(6):607–621CrossRefGoogle Scholar
  41. Liddle B, Lung S (2010) Ge-structure, urbanization, and climate change in developed countries: revisiting STIRPAT for disaggregated population and consumption-related environmental impacts. Popul Environ 31(5):317–343CrossRefGoogle Scholar
  42. López R, Mitra S (2000) Corruption, pollution, and the Kuznets environment curve. J Environ Econ Manag 40:137–150CrossRefGoogle Scholar
  43. Lopez JH (2004) Pro-growth, pro-poor: is there a tradeoff. World Bank PublicationsGoogle Scholar
  44. Martínez-Zarzoso I, Bengochea-Morancho A, Morales-Lage R (2007) The impact of population on CO2 emissions: evidence from European countries. Environ Resour Econ 38:497–512CrossRefGoogle Scholar
  45. Martínez-Zarzoso I, Maruotti A (2011) The impact of urbanization on CO2 emissions: evidence from developing countries. Ecol Econ 70:1344–1353CrossRefGoogle Scholar
  46. McGranahan G (2001) The citizens at risk: from urban sanitation to sustainable cities. In: Earthscan risk in society. Routledge, LondonGoogle Scholar
  47. Narain U, Gupta S, van’t Veld K (2008) Poverty and resource dependence in rural India. Ecol Econ 66:161–176CrossRefGoogle Scholar
  48. Nayak P (2010) Poverty and environmental degradation in rural India: a nexus. In Proceedings of the Annual Conference of NEEA Held at DibrugarhGoogle Scholar
  49. Ncube M, Lufumpa CL, Kayizzi-Mugerwa S (2011) The middle of the pyramid: dynamics of the middle class in Africa. African Development Bank Market Brief, No. 24Google Scholar
  50. Newman PWD, Kenworthy JR (1989) Cities and automobile dependence: an international sourcebook. Gower Publishing, AldershotGoogle Scholar
  51. North DC (1990) Institutions, institutional change and economic performance. Economic development and cultural change. Cambridge University Press, New YorkCrossRefGoogle Scholar
  52. Özokcu S, Özdemir Ö (2017) Economic growth, energy, and environmental Kuznets curve. Renew Sustain Energ Rev 72:639–647CrossRefGoogle Scholar
  53. Panayotou T (1997) Demystifying the environmental Kuznets curve: turning a black box into a policy tool. Environ Dev Econ 2(4):465–484CrossRefGoogle Scholar
  54. Parikh J, Shukla V (1995) Urbanization, energy use and greenhouse effects in economic development. Glob Environ Chang 5(2):87–103CrossRefGoogle Scholar
  55. Poumanyvong P, Kaneko S (2010) Does urbanization lead to less energy use and lower CO2 emissions? A cross-country analysis. Ecol Econ 70:434–444CrossRefGoogle Scholar
  56. Prakash S (1997) Poverty and environment linkages in mountains and uplands: reflections on the ‘poverty Trap’ thesis. Environmental Economics Programme, International Institute for Environment and Development 12:36Google Scholar
  57. Reardon T, Vosti SA (1992) Issues in the analysis of the effects of policy on conservation and productivity at the household level in developing countries. Q J Int Agr 31(4):380–396Google Scholar
  58. Rigobon R, Rodrik D (2004) Rule of law, democracy, openness and income: estimating the interrelationships. NBER Working Paper 13(10750):533–564Google Scholar
  59. Roca J, Padilla E, Farré M, Galletto V (2001) Economic growth and atmospheric pollution in Spain: discussing the environmental Kuznets curve hypothesis. Ecol Econ 39:85–99CrossRefGoogle Scholar
  60. Rodrik D, Subramanian A (2004) Institutions rule : the primacy of institutions over geography and integration in economic development. J Econ Growth 9:131–165CrossRefGoogle Scholar
  61. Rostami F, Sadati A (2008) Poverty alleviation and sustainable development: the role of social capital. J Soc Sci 4(3):202–215Google Scholar
  62. Rudlin D, Falk N (1999) Building the 21st century home: the sustainable urban neighborhood. Architectural Press, OxfordGoogle Scholar
  63. Scherr SJ (2000) A downward spiral? Research evidence on the relationship between poverty and natural resource degradation. Food Pol 25(4):479–498CrossRefGoogle Scholar
  64. Shafik N, Bandyopadhyay S (1992) Economic growth and environmental quality: time-series and cross-country evidence. World Bank Publications, 904Google Scholar
  65. Sindzingre A (2005) Explaining threshold effects of globalization on poverty an institutional perspective. UNU-WIDER Working Paper No.2005/53, 5, 29–30Google Scholar
  66. Subramanian A (2007) The evolution of institutions in India and its relationship with economic growth. Oxford Review of Economic Policy, 23(2):196–220CrossRefGoogle Scholar
  67. Swinton SM, Escobar G, Reardon T (2003) Poverty and environment in Latin America: concepts, evidence and policy implications. World Dev 31(11):1865–1872CrossRefGoogle Scholar
  68. Tamazian A, Bhaskara Rao B (2010) Do economic, financial and institutional developments matter for environmental degradation? Evidence from transitional economies. Energ Econ 32:137–145CrossRefGoogle Scholar
  69. Tebaldi E, Mohan R (2008) Institutions-augmented Solow model and Club convergence. MPRA Working Paper, (69672)Google Scholar
  70. Tebaldi E, Mohan R (2010) Institutions and poverty. J Dev Stud 46(6):1047–1066CrossRefGoogle Scholar
  71. Perera LDH, Lee GHY (2013) Have economic growth and institutional quality contributed to poverty and inequality reduction in Asia? J Asian Econ 27:71–86CrossRefGoogle Scholar
  72. Wedeman A (2012) Double paradox: rapid growth and rising corruption in China. Cornell University Press, LondonCrossRefGoogle Scholar
  73. World Bank (1992) Development and the environment. World Development ReportGoogle Scholar
  74. York R (2007) Demographic trends and energy consumption in European Union nations, 1960-2025. Soc Sci Res 36:855–872CrossRefGoogle Scholar

Copyright information

© Springer-Verlag GmbH Germany, part of Springer Nature 2018

Authors and Affiliations

  1. 1.British University in Egypt (BUE)El Sherouk CityEgypt
  2. 2.UR MASE-ESSAIT, University of Carthage and Tunis Business SchoolUniversity of TunisEl-MouroujTunisia

Personalised recommendations