Institutional Quality and Environmental Pollution: MENA Countries Versus the Rest of the World

Posted: 13 Oct 2015 Last revised: 19 Apr 2016

See all articles by Rajeev K. Goel

Rajeev K. Goel

Illinois State University - Department of Economics

Risto Herrala

European Central Bank (ECB) - Directorate General International and European Relations

Ummad Mazhar

Shaheed Zulkar Ali Bhutto Institute of Science and Technology

Date Written: 2013

Abstract

Using data for over 100 nations over the years 2004-2007, this study examines the effect, of institutional quality on environmental pollution, focusing primarily on influences of corruption, and the shadow economy, and paying special attention to MENA countries. Controlling for a number of factors, results show that both more corrupt nations and nations with large shadow sectors have qualitatively and quantitatively similar effects in yielding fewer (recorded) emissions; however, MENA nations have higher pollution rates. Policy implications are noted.

Keywords: Environment, Pollution, Institutions, Shadow economy, Corruption, MENA

JEL Classification: Q53, K42, P48

Suggested Citation

Goel, Rajeev K. and Herrala, Risto and Mazhar, Ummad, Institutional Quality and Environmental Pollution: MENA Countries Versus the Rest of the World (2013). Economic Systems, Vol. 37, No. 4, pp. 508-521, 2013. Available at SSRN: https://ssrn.com/abstract=2673556

Rajeev K. Goel (Contact Author)

Illinois State University - Department of Economics ( email )

Normal, IL 61790-4200
United States

Risto Herrala

European Central Bank (ECB) - Directorate General International and European Relations ( email )

Kaiserstrasse 29
D-60311 Frankfurt am Main
Germany

Ummad Mazhar

Shaheed Zulkar Ali Bhutto Institute of Science and Technology ( email )

90 and 100 Clifton
Karachi, ISLAMABAD 75600
Pakistan

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