Investigating the environmental Kuznets curve (EKC) hypothesis: does government effectiveness matter? Evidence from 170 countries

Abstract

The lack of studies that examined the influence of government effectiveness on environmental pollution and whether it formulates the environmental Kuznets curve (EKC) hypothesis motivated this research. Therefore, this research examines the role of government effectiveness on CO 2 emission in 170 countries. To achieve the research aims, the system generalized method of moment model is applied while categorizing the countries into three groups: namely high, moderate, and low government effectiveness countries. The major results of this research revealed that government effectiveness reduces CO 2 emission significantly in the overall sample, high and the moderate government effectiveness countries while it is not significant in the low government effectiveness countries. Moreover, the EKC hypothesis is present in the overall sample high and moderate government effectiveness countries while the hypothesis does not exist in the low government effectiveness countries. Therefore, the outcome of this research shows clearly that effectiveness of the government in terms of independence from political pressures, the quality of policy preparation and application, and the reliability of the government's commitment to such policies is an important element that determines the EKC hypothesis. From the outcome of this research, a number of policy implications were provided for the investigated countries.

Nexus between institutional quality and corporate sustainable performance: European evidence

“…Second, since the Paris Agreement in 2015 the pressure on national governments has increased to find solutions to environmental damage, while minimizing the negative impact on economic growth and development. As a result, a variety of strategies, such as environmental regulations, information programs, innovation policies, environmental subsidies, and environmental taxes have been implemented, particularly in Europe (Al-Mulali et al, 2021). Consequently, government effectiveness plays an important role in eliminating environmental damage and social injustice both by implementing and safeguarding policies, as well as motivating through direct participation in environmental and social agendas.…”

The Role of Government Effectiveness in the Light of ESG Data at Global Level

“…Empirical studies have showed that GE can reduce the number of deaths in case of extreme weather even as in the case of tropical cyclones [16]. The possibility of countries to create a relationship between economic growth and green sustainability in the sense of the Environmental Kuznets Curve-EKC [17] depends on GE and especially on the level of human capital of politicians [18]. GE plays an essential role in promoting green economy even in developed and in developing countries [19].…”

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The Role of Government Effectiveness in the Light of ESG Data at Global Level

“…Control of corruption improves GE [47]. [7], [8], [20], [23], [40] GE, Public Debt and Taxation [9], [15], [27], [41] GE, Cultural, Educational and Social Issues [10], [26], [43] GE, Institutions and Legal Order [11], [21], [25], [32], [35], [31], [47] GE, Energy and Environmental Sustainability [12], [16], [18], [19], [30], [24] GE, e-Government, and ITC Sector [13], [14], [24], [22], [34], [36], [37], [39], [46] GE, Economic Growth and Development [22], [28], [33], [44], [45] Methodology and Statistical Analysis [48], [49], [50], [51], [52], [53], [54], [1] Theoretical Frameworks …”