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Exploring the role of economic and institutional indicators for carbon and GHG emissions: policy-based analysis for OECD countries

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Abstract

Most of the developed countries across the globe have targeted to attain sustainable economic growth. With this focus, the current study evaluated 29 OECD countries over the time period of 1990 to 2018 to analyze the influence of economic and environmental indicators, i.e., export diversification, institutional quality, macrocosmic variables on carbon dioxide, and greenhouse gas emissions. The current study used the quantile regression and generalized method of moments approach on the selected panel. Our comprehensive econometric approach allows us to reveal that export diversification negatively affects carbon emissions but promotes greenhouse gas emissions. Similarly, institutional quality, economic growth, financial development, and economic growth helps to reduce carbon emissions but increase greenhouse emissions. In comparison, trade openness exhibits a positive influence on carbon emissions but a negative on greenhouse gas emissions. Besides, urbanization is found one of the major reasons for environmental degradation. In light of empirical fact findings, this study commends some innovative policy insights for scholars, governors, and policymakers.

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Authors and Affiliations

  1. College of Economics, Shenzhen University, Shenzhen, 518060, Guangdong, China

    Muhammad Adnan Bashir & Zhao Dengfeng

  2. College of Management, Shenzhen University, Shenzhen, 518060, Guangdong, China

    Muhammad Farhan Bashir

  3. Pakistan Institute of Development Economics (PIDE), Islamabad, Pakistan

    Syed Rahim

  4. Department of Chemical Engineering, Process and Environmental Technology Lab. KU Leuven, J De Nayerlaan 5, B-2860, Sint-Katelijne-Waver, Belgium

    Zhang Xi

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Contributions

Muhammad Adnan Bashir: original draft writing.

Zhao Dengfeng: research directions and methodology.

Muhammad Farhan Bashir: analysis.

Syed Rahim: data collection.

Zhang Xi: proofreading.

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Correspondence to Muhammad Adnan Bashir.

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Bashir, M.A., Dengfeng, Z., Bashir, M.F. et al. Exploring the role of economic and institutional indicators for carbon and GHG emissions: policy-based analysis for OECD countries. Environ Sci Pollut Res 30, 32722–32736 (2023). https://doi.org/10.1007/s11356-022-24332-7

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