CO2 Emissions and Institutions: Moderating Role of Governance in Environmental Sustainability

The paper deals with the impact of institutional quality, as well as its interdependence with economic performance, on environmental degradation during the period from 2002 to 2021 for a panel of 27 transition countries. The main aim of the study is to investigate the interaction role of institution...

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Main Authors: Jelena Zvezdanović Lobanova, Mikhail Lobanov
Format: Article
Language:English
Published: Institute of International Politics and Economics, Belgrade 2025-03-01
Series:Međunarodni Problemi
Subjects:
Online Access:https://internationalproblems.rs/wp-content/uploads/MP/2025/1/MP-2025-1-article-1.pdf
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author Jelena Zvezdanović Lobanova
Mikhail Lobanov
author_facet Jelena Zvezdanović Lobanova
Mikhail Lobanov
author_sort Jelena Zvezdanović Lobanova
collection DOAJ
description The paper deals with the impact of institutional quality, as well as its interdependence with economic performance, on environmental degradation during the period from 2002 to 2021 for a panel of 27 transition countries. The main aim of the study is to investigate the interaction role of institutional quality on the association between economic growth, urbanization and CO2 emissions in selected countries. Based on the system Generalized Method of Moments estimation results,we find that overall institutional quality, as well as bolstering regulatory structures, strengthening of the rule of law, improving the control of corruption and enhancing government efficiency is positively associated with carbon emissions. The institutional advancement is conducive to economic expansion, which contributes to the deterioration of environmental quality. Our empirical findings reveal that the advancement in institutional framework together with economic expansion and urbanization augment environmental degradation. Given results have important policy implications, indicating that the institutional setting may cause trade-offs between promoting economic growth and the environmental protection.
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publishDate 2025-03-01
publisher Institute of International Politics and Economics, Belgrade
record_format Article
series Međunarodni Problemi
spelling doaj-art-3186d3584bea422796599e7bf50e22a32025-08-20T02:53:12ZengInstitute of International Politics and Economics, BelgradeMeđunarodni Problemi0025-85552406-06902025-03-0177174010.2298/MEDJP2501007ZCO2 Emissions and Institutions: Moderating Role of Governance in Environmental SustainabilityJelena Zvezdanović Lobanova0https://orcid.org/0000-0003-3159-3331Mikhail Lobanov1https://orcid.org/0000-0001-7122-1335Institute of Social Sciences, Belgrade, SerbiaRussian Academy of Sciences, Moscow, Russian FederationThe paper deals with the impact of institutional quality, as well as its interdependence with economic performance, on environmental degradation during the period from 2002 to 2021 for a panel of 27 transition countries. The main aim of the study is to investigate the interaction role of institutional quality on the association between economic growth, urbanization and CO2 emissions in selected countries. Based on the system Generalized Method of Moments estimation results,we find that overall institutional quality, as well as bolstering regulatory structures, strengthening of the rule of law, improving the control of corruption and enhancing government efficiency is positively associated with carbon emissions. The institutional advancement is conducive to economic expansion, which contributes to the deterioration of environmental quality. Our empirical findings reveal that the advancement in institutional framework together with economic expansion and urbanization augment environmental degradation. Given results have important policy implications, indicating that the institutional setting may cause trade-offs between promoting economic growth and the environmental protection.https://internationalproblems.rs/wp-content/uploads/MP/2025/1/MP-2025-1-article-1.pdfinstitutional qualitygovernanceco2 emissionstransition countriesurbanizationeconomic growth
spellingShingle Jelena Zvezdanović Lobanova
Mikhail Lobanov
CO2 Emissions and Institutions: Moderating Role of Governance in Environmental Sustainability
Međunarodni Problemi
institutional quality
governance
co2 emissions
transition countries
urbanization
economic growth
title CO2 Emissions and Institutions: Moderating Role of Governance in Environmental Sustainability
title_full CO2 Emissions and Institutions: Moderating Role of Governance in Environmental Sustainability
title_fullStr CO2 Emissions and Institutions: Moderating Role of Governance in Environmental Sustainability
title_full_unstemmed CO2 Emissions and Institutions: Moderating Role of Governance in Environmental Sustainability
title_short CO2 Emissions and Institutions: Moderating Role of Governance in Environmental Sustainability
title_sort co2 emissions and institutions moderating role of governance in environmental sustainability
topic institutional quality
governance
co2 emissions
transition countries
urbanization
economic growth
url https://internationalproblems.rs/wp-content/uploads/MP/2025/1/MP-2025-1-article-1.pdf
work_keys_str_mv AT jelenazvezdanoviclobanova co2emissionsandinstitutionsmoderatingroleofgovernanceinenvironmentalsustainability
AT mikhaillobanov co2emissionsandinstitutionsmoderatingroleofgovernanceinenvironmentalsustainability