The Role of Institutional Quality in Reducing Environmental Degradation in Canada

• Autorzy: Shahriyar Mukhtarov , Javid Aliyev , Farid Jabiyev , Davut Han Aslan
• Języki publikacji: EN

Abstrakty

EN

This paper uses the Fully Modified Ordinary Least Squares (FMOLS) technique to explore the influence of institutional quality, income consumption of renewable energy, trade openness, and total factor productivity on consumption-based CO2 emissions in Canada from 1996 to 2021. Estimation findings showed that institutional quality, renewable energy use, and total factor productivity exert a statistically significant and negative influence on CO2 emissions. Moreover, our findings indicated that there is a statistically significant and positive impact of income on CO2 emissions, while trade openness exhibits an insignificant impact on CO2 emissions. The study discusses alternative policies, emphasizing the role of institutional quality in reducing CO2 emissions. (original abstract)

Słowa kluczowe

EN

Gas emissions; Corruption; Cointegration; Environmental protection institutions

PL

Emisja gazów; Korupcja; Kointegracja; Instytucje ochrony środowiska

• Czasopismo: Economics & Sociology
• Rocznik: 2024
• Tom: 17
• Numer: nr 1
• Strony: 89--102

Twórcy

autor

Shahriyar Mukhtarov

• Vistula University, Warsaw, Poland; Khazar University, Baku, Azerbaijan; Baku Engineering University, Baku, Azerbaijan

autor

Javid Aliyev

• Hamad Bin Khalifa University, Qatar

autor

Farid Jabiyev

• Baku Higher Oil School (BHOS), Baku, Azerbaijan; Baku Engineering University, Baku, Azerbaijan; Azerbaijan State University of Economics (UNEC), Baku, Azerbaijan

autor

Davut Han Aslan

• Vistula University, Poland

Bibliografia

• Abd Razak, F.D., Khalid, N., & Ali, M.H. (2021). Asymmetric Impact of Institutional Quality on Environmental Degradation: Evidence of the Environmental Kuznets Curve. Sustainability, 13, 12507. https://doi.org/10.3390/su132212507
• Abid, M., (2016), Impact of economic, financial, and institutional factors on CO2 emissions: evidence from Sub-Saharan Africa economies. Util. Policy, 41, 85-94. https://doi.org/10.1016/j.jup.2016.06.009
• Acheampong, A. O., Dzator, J., & Savage, D. A. (2021). Renewable energy, CO2 emissions and economic growth in sub-Saharan Africa: Does institutional quality matter? Journal of Policy Modeling, 43(5), 1070-1093. https://doi.org/10.1016/j.jpolmod.2021.03.011.
• Ahmed, F., Kousar, S., Pervaiz, A., & Ramos-Requena, J.P. (2020). Financial Development, Institutional Quality, and Environmental Degradation Nexus: New Evidence from Asymmetric ARDL Co-Integration Approach. Sustainability, 12, 7812. https://doi.org/10.3390/su12187812
• Ahmed, Z., & Wang, Z., (2019). Investigating the impact of human capital on the ecological footprint in India: An empirical analysis. Environ. Sci. Pollut. Res., 26 (26),26782-26796. https://doi.org/10.1007/s11356-019-05911-7.
• Ali, H.S., Zeqiraj, V., Lin, W.L., Law, S.H., Yusop, Z., Bare, U.A.A., & Chin, L. (2019), Does quality institutions promote environmental quality? Environ. Sci. Pollut. Res., https://doi.org/10.1007/s11356-019-04670-9
• Anwar, A., & Malik, S. (2022). Cogitating the role of technological innovation and institutional quality on environmental degradation in G-7 countries, International Journal of Green Economics, 15(3), doi: 10.1504/IJGE.2021.120871
• Bakhsh, S., Yin, H. & Shabir, M. (2021). Foreign investment and CO2 emissions: do technological innovation and institutional quality matter? Evidence from system GMM approach. Environ. Sci. Pollut. Res., 28, 19424-19438. https://doi.org/10.1007/s11356020-12237-2
• Berk, I., Onater-Isberk, E., & Yetkiner, H. (2022). A unified theory and evidence on CO2 emissions convergence. Environmental Science and Pollution Research, 29(14), 2067520693.
• Bletsas, K., Oikonomou, G., Panagiotidis, M., & Spyromitros, E. (2022). Carbon Dioxide and Greenhouse Gas Emissions: The Role of Monetary Policy, Fiscal Policy, and Institutional Quality. Energies , 15, 4733. https://doi.org/10.3390/en15134733
• Brock, W. A., & Taylor, M. S. (2010). The green Solow model. Journal of Economic Growth, 15(2), 127-153.
• Cao, H., Khan, M.K., Rehman, A. Dagar, V., Oryani, B., & Tanveer, A. (2022). Impact of globalization, institutional quality, economic growth, electricity and renewable energy consumption on Carbon Dioxide Emission in OECD countries. Environ. Sci. Pollut. Res., 29, 24191-24202. https://doi.org/10.1007/s11356-021-17076-3
• Criado, C. O., Valente, S., & Stengos, T. (2011). Growth and pollution convergence: Theory and evidence. Journal of Environmental Economics and Management, 62(2), 199-214.
• Danish, & Ulucak, R. (2020). The pathway toward pollution mitigation: Does institutional quality make a difference? Business Strategy and the Environment. doi:10.1002/bse.2597
• Danish, Hassan, S.T., Baloch, M.A., & Mehmood, N., (2019). Linking economic growth and ecological footprint through human capital and biocapacity. Sustainable Cities and Society. 47 (March), 101516. https://doi.org/10.1016/j.scs.2019.101516. Elsevier.
• Economic Freedom Index, (2023), https://www.heritage.org/index/country/canada (accessed on November 09, 2023)
• Ernst & Young. (2023). Renewable Energy Country Attractiveness Index (RECAI), https://assets.ey.com/content/dam/ey-sites/ey-com/en_gl/topics/power-and-utilities/eyrecai-61-report.pdf
• Fatima, N., Zheng, Y., & Guohua, N. (2022). Globalization, institutional quality, economic growth and CO2 emission in OECD countries: An analysis with GMM and quantile regression. Front. Environ. Sci., 10:967050. doi: 10.3389/fenvs.2022.967050
• Gasimov, I., Jabiyev, F., & Asgarzade, G. (2023). Institutional quality and economic growth in the non-EU post-Soviet countries: Does energy abundance matter?. Economics and Sociology, 16(2), 139-147. https://doi.org/10.14254/2071-789X.2023/16-2/9
• Global Carbon Atlas, (2023). https://globalcarbonatlas.org/emissions/carbon-emissions/ 15.07.2023.
• Godil, D.I., Sharif, A., Agha, H., & Jermsittiparsert, K. (2020) The dynamic nonlinear influence of ICT, financial development, and institutional quality on CO2 emission in Pakistan: new insights from QARDL approach. Environ. Sci. Pollut. Res., 27, 24190-24200 (2020). https://doi.org/10.1007/s11356-020-08619-1
• Hadj, T. B., Ghodbane, A., Mohamed, E. B., & Alfalih, A. A. (2023). Renewable energy for achieving environmental sustainability: institutional quality and information and communication technologies as moderating factors. Environmental Science and Pollution Research, 30(30), 75799-75816.
• Haldar, A., & Sethi, N. (2021). Effect of institutional quality and renewable energy consumption on CO2 emissions-an empirical investigation for developing countries. Environ. Sci. Pollut. Res., 28, 15485-15503 (2021). https://doi.org/10.1007/s11356-02011532-2
• Hasanov, F.J., Khan, Z., Hussain, M., & Tufail, M. (2021). Theoretical Framework for the Carbon Emissions Effects of Technological Progress and Renewable Energy Consumption. Sustainable Development. 1-13. DOI: 10.1002/sd.2175.
• Hasanov, F.J., Mukhtarov, S., & Suleymanov, E. (2023). The Role of Renewable Energy and Total Factor Productivity in Reducing CO2 Emissions in Azerbaijan. Fresh Insights from a New Theoretical Framework Coupled with Autometrics. Energy Strategy Reviews, 47, 101079, https://doi.org/10.1016/j.esr.2023.101079
• Hassan, S.T., Danish, Khan, S.U.D., Xia, E., & Fatima, H. (2020), Role of institutions in correcting environmental pollution: an empirical investigation. Sustain. Cities. Soc., 53. https://doi.org/10.1016/j.scs.2019.101901
• Hussain, M., & Dogan, E. (2021). The role of institutional quality and environment-related technologies in environmental degradation for BRICS. Journal of Cleaner Production, 304, 127059. https://doi.org/10.1016/j.jclepro.2021.127059
• Xaisongkham, S., & Liu, X. (2022). Institutional quality, employment, FDI and environmental degradation in developing countries: evidence from the balanced panel GMM estimator, International Journal of Emerging Markets, doi: 10.1108/IJOEM-10-2021-1583
• International Renewable Energy Agency (IRENA), (2021). https://www.irena.org/energytransition (accessed on October 31, 2023)
• Karim, S., Appiah, M., Naeem, M.A., Lucey, B.M., & Li, M. (2022) Modelling the role of institutional quality on carbon emissions in Sub-Saharan African countries, Renewable Energy, 198, 213-221, https://doi.org/10.1016/j.renene.2022.08.074.
• Khan, A.A. Khan, S.U., Ali, M.A.S., Safi, A., Gao, Y., Ali, M., & Luo, J. (2022). Role of institutional quality and renewable energy consumption in achieving carbon neutrality: Case study of G-7 economies, Science of The Total Environment, 814, https://doi.org/10.1016/j.scitotenv.2021.152797.
• Khan, H., Weili, L., Khan, I., & Oanh, L. thi K. (2021). Recent advances in energy usage and environmental degradation: Does quality institutions matter? A worldwide evidence. Energy Reports, 7, 1091-1103. doi:10.1016/j.egyr.2021.01.085
• Khan, M., & Rana, A.T. (2021). Institutional quality and CO2 emission-output relations: The case of Asian countries, Journal of Environmental Management, 279, 2021, https://doi.org/10.1016/j.jenvman.2020.111569.
• Khoshnevis Yazdi, S., & Shakouri, B. (2017). The effect of renewable energy and urbanization on CO2 emissions: A panel data. Energy Sources, Part B: Economics, Planning, and Policy, 13(2), 121-127. https://doi.org/10.1080/15567249.2017.1400607
• Knight, K. W., & Schor, J. B. (2014). Economic growth and climate change: a cross-national analysis of territorial and consumption-based carbon emissions in high-income countries. Sustainability, 6(6), 3722-3731.
• Li, D., Bai, Y., Yu, P., Meo, M.S., Anees, A., & Rahman. S.U. (2022) Does institutional quality matter for environmental sustainability?. Front. Environ. Sci., 10, doi: 10.3389/fenvs.2022.966762
• Liddle, B. (2018). Consumption-based accounting and the trade-carbon emissions nexus. Energy Economics, 69, 71-78.
• Liddle, B. (2018). Consumption-based accounting and the trade-carbon emissions nexus in Asia: A heterogeneous, common factor panel analysis. Sustainability, 10(10).
• Mahmood, H., Maalel, N., & Zarrad, O. (2019) Trade Openness and CO2 Emissions: Evidence from Tunisia. Sustainability. 11(12):3295. https://doi.org/10.3390/su11123295
• Mehmood, U. (2022). Environmental degradation and financial development: do institutional quality and human capital make a difference in G11 nations?. Environ. Sci. Pollut. Res., 29, 38017-38025 (2022). https://doi.org/10.1007/s11356-022-18825-8
• Mishchuk, H., Czarkowski, J. J., Neverkovets, A., & Lukács, E. (2023). Ensuring Sustainable Development in Light of Pandemic "New Normal" Influence. Sustainability, 15(18), 13979. https://doi.org/10.3390/su151813979
• Mikayilov, J.I., Mukhtarov, S., Mammadov, J., & Aliyev, S. (2020): Environmental consequences of tourism: do oil-exporting countries import more CO2 emissions?, Energy Sources, Part B: Economics, Planning, and Policy, Doi: 10.1080/15567249.2020.1753856
• Mukhtarov, S. Aliyev, S., Mikayilov, J., Ismayilov, A., & Rzayev, A. (2021). The FDI-CO2 nexus from the sustainable development perspective: the case of Azerbaijan, International Journal of Sustainable Development & World Ecology, 28(3), 246-254. https://doi.org/10.1080/13504509.2020.1804479
• Mukhtarov, S., Aliyev, J., Borowski, P.F., & Disli, M. (2023a). Institutional quality and renewable energy transition: Empirical evidence from Poland. Journal of International Studies, 16(3), 208-218. https://doi.org/10.14254/2071-8330.2023/16-3/12
• Mukhtarov, S., Aliyev, F., Aliyev J., & Ajayi, R. (2023b). Renewable Energy Consumption and Carbon Emissions: Evidence from an Oil-Rich Economy. Sustainability, 15(1), 134.
• Mukhtarov, S. (2023), Do renewable energy and total factor productivity eliminate CO2 emissions in Turkey?. Environ. Econ. Policy. Stud., https://doi.org/10.1007/s10018-023-00377-x
• Obobisa, E.S. Chen, H., & Mensah, I.A. (2022). The impact of green technological innovation and institutional quality on CO2 emissions in African countries, Technological Forecasting and Social Change, 180. https://doi.org/10.1016/j.techfore.2022.121670.
• Ohlan, R. (2015). The impact of population density, energy consumption, economic growth and trade openness on CO2 emissions in India. Nat Hazards, 79, 1409-1428. https://doi.org/10.1007/s11069-015-1898-0
• Ojaghlou, M., & Uğurlu, E. (2023). Urbanization and climate change: Environmental Kuznets Curve (EKC) and STIRPAT analysis for Turkey. Economics and Sociology, 16(1), 259-270. https://doi.org/10.14254/2071-789X.2023/16-1/16
• Park, J.Y., 1992. Canonical cointegrating regressions. Econometrica, 60 (1), 119-143.
• Pata, U. K. (2018). Renewable energy consumption, urbanization, financial development, income and CO2 emissions in Turkey: Testing EKC hypothesis with structural breaks. Journal of Cleaner Production, 187, 770-779. https://doi.org/10.1016/j.jclepro.2018.03.236
• Penn World Table 10.0 database. www.ggdc.net/pwt. (accessed on August 31, 2023)
• Phillips, P.B. & Perron, P. (1988). Testing for Unit Roots in Time Series Regression. Biometrika, 75: 335-346.
• Phillips, P.C.B., & Hansen, B.E. (1990). Statistical inference in instrumental variables regression with I(1) processes. Rev. Econ. Stud., 57 (1), 99-125. https://doi.org/10.2307/2297545.
• Raihan, A., & Tuspekova, A. (2022) Dynamic impacts of economic growth, renewable energy use, urbanization, industrialization, tourism, agriculture, and forests on carbon emissions in Turkey. Carbon Research 1, 20. https://doi.org/10.1007/s44246-022-00019-z
• Sadorsky, P. (2009). Renewable energy consumption, CO2 emissions and oil prices in the G7 countries. Energy Econ. 31 (3), 456-462.
• Sansyzbayeva, G., Temerbulatova, Z., Zhidebekkyzy, A., & Ashirbekova, L. (2020). Evaluating the transition to green economy in Kazakhstan: A synthetic control approach. Journal of International Studies, 13(1), 324-341. https://doi.org/10.14254/2071-8330.2020/13-1/21
• Sarkodie, S.A., 2018. The invisible hand and EKC hypothesis: what are the drivers of environmental degradation and pollution in Africa?, Environmental Science and Pollution Research. Environ. Sci. Pollut. Control Ser. 25 (22), 21993e22022. https://doi.org/10.1007/s11356-018-2347-x.
• Sarkodie, S.A., & Adams, S., 2018. Renewable energy, nuclear energy, and environmental pollution: Accounting for political institutional quality in South Africa. Sci. Total Environ., 643, 1590-1601. https://doi.org/10.1016/j.scitotenv.2018.06.320.
• Shahbaz, M., Nasreen, S., Ahmed, K., & Hammoudeh, S. (2017). Trade openness-carbon emissions nexus: The importance of turning points of trade openness for country panels. Energy Economics, 61, 221-232. https://doi.org/10.1016/j.eneco.2016.11.008
• Shuai, C., Chen, X., Shen, L., Wu, Y., & Tan, Y. (2017), The turning points of carbon Kuznets curve: Evidences from panel and time-series data of 164 countries. Journal of Cleaner Production. 162, 1031-1047.
• Tamazian, A., & Bhaskara Rao, B. (2010). Do economic, financial and institutional developments matter for environmental degradation? Evidence from transitional economies. Energy Economics, 32(1), 137-145. https://doi.org/10.1016/j.eneco.2009.04.004
• Tarczyński, W., Roman, L., Rejman, K., Salahodjaev, R., & Azam, S. (2023). Military spending and CO2 emissions: Empirical findings from countries with highest per capita military spending. Journal of International Studies, 16(2), 211-221. https://doi.org/10.14254/2071-8330.2023/16-2/14
• Teng, JZ., Khan, M.K., Khan, M.I., Chishti, M.Z., & Khan, M.O. (2021). Effect of foreign direct investment on CO2 emission with the role of globalization, institutional quality with pooled mean group panel ARDL. Environ Sci Pollut Res., 28, 5271-5282. https://doi.org/10.1007/s11356-020-10823-y
• The GlobalEconomy, (2023a) https://www.theglobaleconomy.com/Canada/wb_corruption/ (accessed on August 31, 2023)
• The GlobalEconomy, (2023b). https://www.theglobaleconomy.com/rankings/wb_corruption/ (accessed on August 31, 2023)
• Transparency International, (2023). Corruption Perceptions Index. https://www.transparency.org/en/cpi/2022/index/can, (accessed on August 31, 2023)
• Thompson, S. (2022) Green Renewable Power and Policy in Canada: A Just Energy Transition to Net-Zero. Journal of Geoscience and Environment Protection, 10, 1-12. https://doi.org/10.4236/gep.2022.103001.
• Troster, V., & Shahbaz, M. (2018). U.S. Gazi, Renewable energy, oil prices, and economic activity: a Granger-causality in quantiles analysis, Energy Econ., 70, 440-452, https://doi.org/10.1016/j.eneco.2018.01.029
• Udemba, E.N. (2021). Mitigating environmental degradation with institutional quality and foreign direct investment (FDI): new evidence from asymmetric approach. Environ Sci Pollut Res., 28, 43669-43683. https://doi.org/10.1007/s11356-021-13805-w
• UNCTAD (2020) https://unctad.org/topic/trade-analysis/chart-10-may-2021 (accessed on 31 october, 2023)
• Waheed, R., Chang, D., Sarwar, S., & Chen, W. (2018). Forest, agriculture, renewable energy, and CO2 emission. Journal of Cleaner Production, 172, 4231-4238. https://doi.org/10.1016/j.jclepro.2017.10.287
• Warsame, A.A., Sheik-Ali, I.A., Mohamed, J., & Sarkodie, S.A. (2022). Renewables and institutional quality mitigate environmental degradation in Somalia, Renewable Energy, 194, 1184-1191. https://doi.org/10.1016/j.renene.2022.05.109
• World Bank. (2023). World Development Indicators, https://databank.worldbank.org/source/world-development-indicators (accessed on October 31, 2023)
• Worldometer (2016). https://www.worldometers.info/oil/oil-reserves-by-country/ (accessed on October 31, 2023)
• Yang, B., Ali, M., Hashmi, S.H., & Jahanger, A. (2022). Do Income Inequality and Institutional Quality affect CO2 Emissions in Developing Economies?. Environ Sci Pollut Res., 29, 42720-42741. https://doi.org/10.1007/s11356-021-18278-5.

Identyfikatory

DOI

10.14254/2071-789X.2024/17-1/6