Rule of law and the environmental Kuznets curve: evidence for carbon emissions

Castiglione, Concetta; Infante, Davide; Smirnova, Janna

doi:10.1504/ijse.2012.047932

Cited by 47 publications

(21 citation statements)

References 45 publications

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“…Although some studies take into account the rule of law [23][24][25], to the best of our knowledge, there are very few works [26,27,15] that analyze this institution from an environmental perspective. As for the choice of the pollutant, we concentrate our attention to carbon dioxide, which is one of the most considered energy-related pollutant and a major source of the greenhouse effect.…”

Section: Methodsmentioning

confidence: 99%

Environment and economic growth: is the rule of law the go-between? The case of high-income countries

2015

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Background: The links between pollution, institutions, and economic growth may be not so univocal as argued in the literature, as these factors may influence each other since some reverse causality may exist between them. The understanding of this relationship is important for identifying appropriate policies for sustainable development. Methods: We investigate the long-run relationship between pollution, institutions, and economic growth, considering as variables carbon dioxide emissions, rule of law, and income. The model offers an analysis of causality direction using a panel-VAR approach for the period 1996-2010 for 33 high-income countries that include advanced, emerging, and former-transition economies.Results: The results demonstrate a positive reverse causality relationship between the rule of law and income, indicating that higher income implies stronger rule of law and vice versa. The rule of law is found to have a negative relationship with pollution, confirming that the enforcement of rules is "a conditio sine qua non" to control emissions. No causality relationship is found for pollution and income that can be due to the different stages of economic development of emerging, former-transition, and developed economies, implying heterogeneity in their environmental protection policies. Conclusions: We argue that the rule of law matters both for economic growth and environment, working as a go-between and creating a win-win situation, where stronger institutions increase the levels of income and vice versa. In order to enhance sustainable development, a policy maker should allocate additional resources for both monitoring the application of the rule of law and its enforcement.

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Section: Methodsmentioning

confidence: 99%

Environment and economic growth: is the rule of law the go-between? The case of high-income countries

2015

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“…The literature on general innovation states that better institutions are likely to promote general innovation and investments (Habiyaremye and Raymond 2013;Tebaldi and Elmslie 2013;Silve and Plekhanov 2015). The contributions focussing on the relationship between institutions and the environment suggest that good governance is generally associated with a greater adoption of environmental policies and with better environmental outcomes (Castiglione et al 2012(Castiglione et al , 2014.…”

Section: Hypothesis 2 (H2): Institutional Quality Measured As Good Gmentioning

confidence: 99%

The Political Economy of Energy Innovation

2016

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This paper empirically investigates the effects of environmental policy, institutions, political orientation, and lobbying on energy innovation and finds that they significantly affect the incentives to innovate and create cleaner energy efficient technologies. We conclude that political economy factors may act as barriers even in the presence of stringent environmental policy, implying that, to move towards a greener economy, countries should combine environmental policy with a general strengthening of institutional quality, consider the influence of government's political orientation on environmental policies, and the implications of the size of energy intensive sectors in the economy.

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“…One of these factors is institutional enforcement. Institutions, such as the protection of property rights, legal origins, democracy and governance, have been shown to have a strong impact on the quality of the environment [10][11][12][13][14]. However, among the institutions studied from an environmental perspective, that of the rule of law has not yet received the attention it deserves.…”

Section: Introductionmentioning

confidence: 99%

“…Environmental policies are therefore dependent on the quality of this institution, as it determines their effective application. Although the link between the quality of the rule of law and effective environmental policies is hardly surprising, very few empirical studies have shown that the rule of law improves environmental quality [13,22,27].…”

Section: Introductionmentioning

confidence: 99%

Is There Any Evidence on the Existence of an Environmental Taxation Kuznets Curve? The Case of European Countries under Their Rule of Law Enforcement

2014

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Abstract:The paper gives new insights into the environmental taxation policy, demonstrating the existence of an inverse U-shaped relationship between environmental taxation and income in European countries. Our findings reveal this relationship to be influenced by enforcement of the rule of law, which contributes to shifting the turning point on the curve to lower income levels. We show that former transition economies have not reached the turning point due to weak institutions. To achieve the goal of sustainable development, the European Environment Agency's Environmental Taxation Reform, proposing to shift taxation from "goods" to "bads", should be accompanied by effective enforcement or the rule of law. The heterogeneity found between market-based and former transition European countries demonstrates the existence of problems at the EU-level in the coordination of environmental policies and enforcing the rule of law. In addition, the analysis of the determinants of environmental taxation points to the importance of factors related to consumption and production, governance, environmental quality, oil price shocks and the shift of environmental policy in European countries.

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Rule of law and the environmental Kuznets curve: evidence for carbon emissions

Cited by 47 publications

References 45 publications

Environment and economic growth: is the rule of law the go-between? The case of high-income countries

Environment and economic growth: is the rule of law the go-between? The case of high-income countries

The Political Economy of Energy Innovation

Is There Any Evidence on the Existence of an Environmental Taxation Kuznets Curve? The Case of European Countries under Their Rule of Law Enforcement

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