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Relationship between economic growth and CO2 emissions: does governance matter?
Ximei Liu1, Khalid Latif2, Zahid Latif3
1School of Economics and Management, Zhejiang Sci-Tech University, Hangzhou, Zhejiang, China.
This study examines how governance affects economic growth and carbon dioxide (CO2) emissions in high-emitting nations. Good governance, encompassing political, economic, and institutional aspects, improves environmental quality by reducing CO2 emissions.
Area of Science:
- Environmental Science
- Economics
- Political Science
Background:
- Rising carbon dioxide (CO2) emissions pose significant environmental challenges.
- Existing research often overlooks the role of governance in the economic growth-CO2 emissions relationship.
- The Environmental Kuznets Curve (EKC) framework provides a basis for analyzing pollution levels relative to economic development.
Purpose of the Study:
- To investigate the influence of governance on the nexus between economic growth and CO2 emissions.
- To analyze this relationship within the EKC framework for high CO2 emitting countries.
- To provide empirical evidence on how different governance dimensions impact environmental quality.
Main Methods:
- Panel data estimation methods were employed.
- The study analyzed data from five high CO2 emission countries.
- The analysis covered the period from 1996 to 2017.
Main Results:
- Governance measures significantly influence CO2 emission levels in high-emitting countries.
- Political governance was found to enhance environmental quality.
- Economic and institutional governance also contribute positively to environmental quality.
Conclusions:
- Good governance is crucial for mitigating CO2 emissions and improving environmental quality.
- Effective governance strategies are necessary to protect the environment.
- Policymakers should prioritize strengthening political, economic, and institutional governance to address environmental stress.
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