The impact of economic factors and governance on greenhouse gas emission

Governance is a basic factor explaining the poor economic, social and environmental performance of many developing countries. Since good governance impacts the environment and management of carbon emissions, in this study, we examine the relationship between governance and economic performance and i...

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Bibliographic Details
Published in:Environmental economics and policy studies 2020-04, Vol.22 (2), p.153-172
Main Authors: Ronaghi, Marzieh, Reed, Michael, Saghaian, Sayed
Format: Article
Language:English
Subjects:
Aggregate data
Banking
Carbon dioxide
Carbon dioxide emissions
Clean technology
Developing countries
Econometrics
Economic conditions
Economic factors
Economic models
Economic performance
Economics
Economics and Finance
Emissions
Emissions control
Employment
Environmental Economics
Environmental impact
Environmental management
Environmental performance
Environmental policy
Exports
Financial institutions
Foreign investment
Governance
Greenhouse effect
Greenhouse gases
Impact analysis
Imports
Inflation
International financing
International trade
LDCs
Organizations
Panel data
Petroleum
Research Article
Social Policy
Technology
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Summary:Governance is a basic factor explaining the poor economic, social and environmental performance of many developing countries. Since good governance impacts the environment and management of carbon emissions, in this study, we examine the relationship between governance and economic performance and its impact on CO 2 emissions, employing the World Bank’s Aggregate Governance Indicators. To this end, data from Organization of the Petroleum Exporting Countries over 8 years (from 2006 to 2015) is analyzed through spatial econometric techniques for panel data. The results show that the governance index (with a negative sign) and GDP growth variable (with a positive sign) have the greatest impact on carbon dioxide emissions. The inflation rate, exports, imports, foreign investment, and employment also have an impact on CO 2 emissions. The policy recommendations of this research are that governments can help protect the environment by adopting better governance practices, improving the governance structure, and implementing a clean technology strategy in production to reduce greenhouse gas emissions.
ISSN:1432-847X
1867-383X
DOI:10.1007/s10018-019-00250-w