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Published on: June 24, 2019
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Dose institutional quality influences the relationship between urbanization and CO2 emissions?
Hayat Khan1, Tengpeng Chen2, Robeena Bibi3
1School of Economics and Management, Zhejiang University of Science and Technology, Hangzhou, China.
Plos One
|October 11, 2023
Summary
Urbanization initially harms environmental quality by increasing carbon emissions in Belt and Road Initiative (BRI) countries. However, higher urbanization levels can later reduce emissions, with institutional quality playing a key role in environmental sustainability.
Area of Science:
- Environmental Science
- Economics
- Political Science
Background:
- Global warming and climate change are critical challenges driven by economic expansion, energy use, and urbanization.
- Institutional quality offers a potential solution to mitigate environmental degradation.
Purpose of the Study:
- To investigate the effects of urbanization and institutional quality on environmental quality in Belt and Road Initiative (BRI) countries.
- To analyze the relationship between economic factors, government effectiveness, and carbon emissions.
Main Methods:
- Utilized a two-step generalized method of moments (GMM) for empirical analysis.
- Examined data from BRI countries spanning the period 2002-2019.
Main Results:
- Urbanization initially increases carbon dioxide emissions, degrading environmental quality.
- A quadratic effect of urbanization suggests emission reductions at higher development levels.
- Education, economic growth, foreign direct investment, and government effectiveness were found to increase carbon emissions.
- The interaction of urbanization and government effectiveness negatively impacts environmental quality, highlighting government's role.
Conclusions:
- Urbanization presents a dual impact on environmental quality, with initial negative effects followed by potential long-term improvements.
- Strengthening institutional quality, particularly government effectiveness, is crucial for achieving environmental sustainability amidst urbanization.
- Policy implications are significant for BRI countries navigating economic development and environmental protection.
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