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The environmental impact of governance: a system-generalized method of moments analysis

Authors
  • Gök, Adem1
  • Sodhi, Nausheen2
  • 1 Kırklareli University,
  • 2 Panjab University,
Type
Published Article
Journal
Environmental Science and Pollution Research
Publisher
Springer-Verlag
Publication Date
Feb 26, 2021
Pages
1–14
Identifiers
DOI: 10.1007/s11356-021-12903-z
PMID: 33634407
PMCID: PMC7906829
Source
PubMed Central
Keywords
Disciplines
  • Research Article
License
Unknown

Abstract

To investigate the role of governance on environmental quality, two hypotheses are developed; when good governance practices dominate governance structures, then improvement in governance levels leads to better environmental outcomes, and when bad governance practices dominate governance structures, then improvement in governance levels leads to deterioration in environmental outcomes. To test these hypotheses for 115 countries clustered as high, middle, and low income over the period of 2000 to 2015, system generalized method of moments is employed. The results show that an improvement in governance increases environmental quality in high income countries, while it decreases environmental quality in middle- and low-income countries. We concluded that high-income countries should improve governance structures to get better environmental outcomes without changing their environment-oriented policies and governance practices, and middle- and low-income countries should bring in structural changes to their governance systems by prioritizing environmental outcomes over economic outcomes for improving environmental quality.

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