Globalization, institutions, and environmental quality in Middle East and North African countries

Sustainable development has received significant attention due to rapidly rising environmental issues, and finding solutions to these issues caused by various indicators are the subject of research nowadays. To this end, the increasing globalization and institutional quality to address environmental challenges have become hot subject and need better attention. Accordingly, this study enhances the literature by examining the role of political stability, the rule of law, control of corruption, and globalization on the environment for 14 Middle Eastern and North African (MENA) countries between 1996 & 2018, applying cross-sectional augmented autoregressive distributed lags (CS-ARDL) approach. The short and long-run estimates obtained from CS-ARDL confirm that globalization, the rule of law, political stability, and corruption control significantly reduce carbon emissions (CO₂e). Contrarily, energy production, financial development, and economic growth have significant positive effects, suggesting they raise CO₂e. The study also estimates a robustness analysis with the Driscoll-Kraay estimator, confirming results on signs and magnitude identical to those with CS-ARDL. These results drive the MENA countries to adhere to environmental standards to reduce CO₂e strictly. Environmental-friendly industrial techniques should be employed, mainly while producing. The governments of these countries should facilitate the governance process through the globalization of environmental products to ensure long-term environmental sustainability.