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Relationship between economic growth and CO2 emissions: does governance matter?

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Abstract

The environmental stress due to massive CO2 emissions is a critical issue for scholars and policymakers. Many studies have discussed various determinants of environmental pollution both from theoretical and empirical perspectives. However, how governance influences the nexus between economic growth and CO2 emissions is rarely studied. Hence this study investigates the relationship between economic growth, governance and CO2 emissions within the framework of the Environmental Kuznets Curve for five high CO2 emission countries over 1996–2017. Empirical results from the panel data estimation methods reflect that measures of governance influence emission levels differently in high CO2 emission countries. Overall, political, economic and institutional governance enhance environmental quality. According to the results, provision of good governance needs to exercise effective measures to enhance and protect environmental quality.

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Notes

  1. The sample of high CO2 emissions countries, i.e., China, India, Japan Russia, and the USA is selected for the study. The panel of those countries is chosen because they contribute about 60% of the world CO2 emissions, including 27% from China, 17% from the USA, 5% from Russia, 5% from India, and 4% from Japan.

  2. The indicators of governance contain missing values which is filled through extrapolation with linear method (Ahmad et al. 2016)

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Funding

This work is supported by the Scientific Research Foundation of Zhejiang Sci-Tech University (No.18092249-Y).

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Correspondence to Nan Li.

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Responsible editor: Nicholas Apergis

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Liu, X., Latif, K., Latif, Z. et al. Relationship between economic growth and CO2 emissions: does governance matter?. Environ Sci Pollut Res 27, 17221–17228 (2020). https://doi.org/10.1007/s11356-020-08142-3

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  • DOI: https://doi.org/10.1007/s11356-020-08142-3

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