The Long-Run Association between Corruption and CO2 Emission: Evidence from Developing Economies
Year 2024,
Volume: 13 Issue: 26, 20 - 29
Jülide Yalçınkaya Koyuncu
,
Mustafa Ünver
Abstract
Given the motivation of that lax environmental regulations and policies are common in highly corrupted countries; this study seeks empirical evidence for hypothesis asserting that corruption worsens CO2 emission in a country in the long run. We used a balanced data of 127 developing economies for the period of 2002 and 2017 to implement our analyses. A cointegration association between corruption and CO2 emission was identified. According to the estimation results, an increase in the corruption significantly increases CO2 emission in the long run. In other words, CO2 emission goes up by 1.05% given a 1% rise in corruption. Also, a two-way causality between series of corruption and CO2 emission was found.
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Yolsuzluk ve CO2 Emisyonu Arasındaki Uzun Dönem İlişkisi: Gelişen Ekonomilerden Kanıt
Year 2024,
Volume: 13 Issue: 26, 20 - 29
Jülide Yalçınkaya Koyuncu
,
Mustafa Ünver
Abstract
Çevresel düzenlemeler ve politikaların belirsizliği yüksek şekilde yolsuz ülkelerde yaygındır. Bu çalışma; bir ülkede uzun dönemde yolsuzluğun karbondioksit emisyonunu kötüleştirdiğini öne süren hipotez için ampirik bir kanıt aramaktadır. Analizlerimizi uygulamak için 127 gelişmekte olan ekonominin 2002-2017 dönemi dengeli panel verileri kullanılmıştır. Yolsuzluk ve karbondioksit emisyonu arasında bir eş-bütünleşme ilişkisi elde edilmiştir. Tahmin sonuçlarına göre; uzun dönemde yolsuzluktaki bir artış karbondioksit emisyonunu istatistiksel olarak anlamlı şekilde arttırır. Diğer bir deyişle; yolsuzluktaki %1’lik bir artış karbondioksit emisyonunu %1,05 kadar yükseltir. Ayrıca, değişkenlerin serileri arasında iki yönlü nedensellik bulunmuştur.
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- Alam, M. M., Murad, M. W., Noman, A. H. M., & Ozturk, I. (2016). Relationships among Carbon Emissions, Economic Growth, Energy Consumption and Population Growth: Testing Environmental Kuznets Curve Hypothesis for Brazil, China, India, and Indonesia. Ecological Indicators, 70, 466-479, https://doi.org/10.1016/j.ecolind.2016.06.043.
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- Cole, M. A. (2007). Corruption, Income, and the Environment: An Empirical Analysis. Ecological Economics, 62(3-4), 637-647, https://doi.org/10.1016/j.ecolecon.2006.08.003.
- Cooray, A., & Dzhumashev, R. (2018). The Effect of Corruption on Labour Market Outcomes. Economic Modelling, 74, 207-218. https://doi.org/10.1016/j.econmod.2018.05.015.
- d'Agostino, G., Dunne, J. P., & Pieroni, L. (2016). Corruption and Growth in Africa. European Journal of Political Economy, 43, 71-88, https://doi.org/10.1016/j.ejpoleco.2016.03.002.
- Dincer, O. C., & Fredriksson, P. G. (2018). Corruption and Environmental Regulatory Policy in the United States: Does Trust Matter? Resource and Energy Economics, 54, 212-225, https://doi.org/10.1016/j.reseneeco.2018.10.001.
- Dumitrescu, E. I., & Hurlin, C. (2012). Testing for Granger Non-causality in Heterogeneous Panels. Economic Modelling, 29, 1450-1460, https://doi.org/10.1016/j.econmod.2012.02.014.
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- Egger, P., & Winner, H. (2005). Evidence on Corruption as an Incentive for Foreign Direct Investment. European Journal of Political Economy, 21(4), 932-952, https://doi.org/10.1016/j.ejpoleco.2005.01.002.
- Ghaniy, N., & Hastiadi, F. F. (2017). Political, Social, and Economic Determinants of Corruption. International Journal of Economics and Financial Issues, 7(4), 144-149.
- Graff Zivin, J., & Neidell, M. (2012). The Impact of Pollution on Worker Productivity. American Economic Review, 102(7), 3652-73, https://doi.org/10.1257/aer.102.7.3652.
- Grandes, M., & Coremberg, A., (2020). Corruption Accounting and Growth: Towards a New Methodology. Journal of Financial Crime. 27(1), 43-57, https://doi.org/10.1108/JFC-04-2019-0039.
- Gründler, K., & Potrafke, N. (2019). Corruption and Economic Growth: New Empirical Evidence. European Journal of Political Economy, 60, 101810, https://doi.org/10.1016/j.ejpoleco.2019.08.001.
- Gyimah-Brempong, K. (2002). Corruption, Economic Growth, and Income Inequality in Africa. Economics of Governance, 3(3), 183-209, https://doi.org/10.1007/s101010200045.
- Huang, C. J. (2016). Is Corruption Bad for Economic Growth? Evidence from Asia-Pacific Countries. The North American Journal of Economics and Finance, 35, 247-256, https://doi.org/10.1016/j.najef.2015.10.013.
- Hunady, J. (2017). Individual and Institutional Determinants of Corruption in the EU Countries: The Problem of Its Tolerance. Economia Politica, 34(1), 139-157, https://doi.org/10.1007/s40888-017-0056-4.
- Jain, A. K. (2001). Corruption: A Review. Journal of Economic Surveys, 15(1), 71-121, https://doi.org/10.1111/1467-6419.00133.
- Jain, P. K., Kuvvet, E., & Pagano, M. S. (2017). Corruption’s Impact on Foreign Portfolio Investment. International Business Review, 26(1), 23-35, https://doi.org/10.1016/j.ibusrev.2016.05.004.
- Jeong, S. J. (2013). The Impact of Air Pollution on Human Health in Suwon City. Asian Journal of Atmospheric Environment, 7(4), 227-233, https://doi.org/10.5572/ajae.2013.7.4.227.
- Jetter, M., & Parmeter, C. F. (2018). Sorting through Global Corruption Determinants: Institutions and Education Matter–Not Culture. World Development, 109, 279-294, https://doi.org/10.1016/j.worlddev.2018.05.013.
- Katircioglu, S. T. (2014). International Tourism, Energy Consumption, and Environmental Pollution: The Case of Turkey. Renewable and Sustainable Energy Reviews, 36, 180-187, https://doi.org/10.1016/j.rser.2014.04.058.
- Khoshnevis Yazdi, S., & Khanalizadeh, B. (2017). Air Pollution, Economic Growth and Health Care Expenditure. Economic Research-Ekonomska Istraživanja, 30(1), 1181-1190, https://doi.org/10.1080/1331677X.2017.1314823.
- Kong, Y., & Khan, R. (2019). To Examine Environmental Pollution by Economic Growth and their Impact in an Environmental Kuznets Curve (EKC) among Developed and Developing Countries. Plos One, 14(3), e0209532, https://doi.org/10.1371/journal.pone.0209532.
- Lee, D., Robertson, C., Ramsay, C., Gillespie, C., & Napier, G. (2019). Estimating the Health Impact of Air Pollution in Scotland, and the Resulting Benefits of Reducing Concentrations in City Centres. Spatial and Spatio-Temporal Epidemiology, 29, 85-96. https://doi.org/10.1016/j.sste.2019.02.003.
- Li, B., Cheng, S., & Xiao, D. (2020). The Impacts of Environmental Pollution and Brain Drain on Income Inequality. China Economic Review, 101481. https://doi.org/10.1016/j.chieco.2020.101481.
- Li, W. & Zhang, K. (2019). Does Air Pollution Crowd Out Foreign Direct Investment Inflows? Evidence from a Quasi-Natural Experiment in China. Environmental and Resource Economics, 73(4), 1387-1414, https://doi.org/10.1007/s10640-019-00329-8.
- Lisciandra, M., & Migliardo, C. (2017). An Empirical Study of the Impact of Corruption on Environmental Performance: Evidence from Panel Data. Environmental and Resource Economics, 68(2), 297-318, https://doi.org/10.1007/s10640-016-0019-1.
- Omri, A. (2013). CO2 Emissions, Energy Consumption and Economic Growth Nexus in MENA Countries: Evidence from Simultaneous Equations Models. Energy Economics, 40, 657-664, https://doi.org/10.1016/j.eneco.2013.09.003.
- Pesaran, M. H. (2003). A Simple Panel Unit Root Test in the Presence of Cross Section Dependence. In: Cambridge Working Papers in Economics No. 0346, Faculty of Economics, University of Cambridge. Retrieved from https://onlinelibrary.wiley.com/doi/epdf/10.1002/jae.951,https://doi.org/10.1002/jae.951.
- Pesaran, M. H. (2004). General Diagnostic Tests for Cross Section Dependence in Panels. In: CESifo Working Papers No. 1240. Bonn, Germany. Retrieve from the https://docs.iza.org/dp1240.pdf.
- Pesaran, M. H. (2006). Estimation and Inference in Large Heterogeneous Panels with a Multifactor Error Structure. Econometrica, 74(4), 967-1012, https://doi.org/10.1111/j.1468-0262.2006.00692.x.
- Pesaran, M. H. (2007). A Simple Panel Unit Root Test in the Presence of Cross-section Dependence. Journal of Applied Econometrics, 22, 265-312, https://doi.org/10.1002/jae.951.
- Pesaran, M. H. (2015). Testing Weak Cross-Sectional Dependence in Large Panels. Econometric Reviews, 34(6-10), 1089-1117, https://doi.org/10.1080/07474938.2014.956623.
- Pesaran, M. H., Ullah, A., & Yamagata, T. (2008). A Bias-Adjusted LM Test of Error Cross Section Independence. The Econometrics Journal, 11(1), 105-127, https://doi.org/10.1111/j.1368-423X.2007.00227.x.
- Rovira, J., Domingo, J. L., & Schuhmacher, M. (2020). Air Quality, Health Impacts and Burden of Disease due to Air Pollution (PM10, PM2.5, NO2 and O3): Application of Airq+ Model to the Camp De Tarragona County (Catalonia, Spain). Science of The Total Environment, 703, 135538, https://doi.org/10.1016/j.scitotenv.2019.135538.
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