The moderating effect of institutional quality on the relationship between structural change and CO2 emissions in emerging economies

Structural change, which has led to significant progress in social and human development, as evidenced by the progress of the Emerging and Growth Leading Economies (EAGLEs), also has a direct impact on environmental quality. This transformation is largely influenced by the quality of institutions, w...

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Main Authors: Daghbagi Hamrouni, Radhouane Hasni, Imen Ouerghi
Format: Article
Language:English
Published: Elsevier 2025-09-01
Series:Environmental and Sustainability Indicators
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2665972725002387
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author Daghbagi Hamrouni
Radhouane Hasni
Imen Ouerghi
author_facet Daghbagi Hamrouni
Radhouane Hasni
Imen Ouerghi
author_sort Daghbagi Hamrouni
collection DOAJ
description Structural change, which has led to significant progress in social and human development, as evidenced by the progress of the Emerging and Growth Leading Economies (EAGLEs), also has a direct impact on environmental quality. This transformation is largely influenced by the quality of institutions, which may therefore moderate the relationship between structural change and environmental quality. This study examines the impact of structural change and institutional quality on CO2 emissions in these economies from 2000 to 2021, including the effect of their interaction. Using the ARDL-PMG model, control variables such as GDP, energy consumption and urbanization are included to account for the specific characteristics of these economies. The results show that GDP, energy consumption and urbanization contribute to higher emissions, while structural change and institutional quality directly reduce CO2 emissions. Moreover, their interaction creates a combined effect that amplifies this reduction, highlighting the synergy between structural transformation and the institutional framework, while emphasizing the need for coordinated action to better target environmental policies. Policy recommendations are derived from these empirical findings.
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series Environmental and Sustainability Indicators
spelling doaj-art-53d5d7edcafc4bd9b850f6a4df6ad1ec2025-08-20T03:41:54ZengElsevierEnvironmental and Sustainability Indicators2665-97272025-09-012710081710.1016/j.indic.2025.100817The moderating effect of institutional quality on the relationship between structural change and CO2 emissions in emerging economiesDaghbagi Hamrouni0Radhouane Hasni1Imen Ouerghi2Imam Mohammad Ibn Saud Islamic University (IMSIU), Saudi Arabia; Corresponding author.University of Manouba, Higher School of Commerce, QuAnLab LR24ES21, Manouba, TunisiaUniversity of Manouba, Higher School of Commerce, QuAnLab LR24ES21, Manouba, TunisiaStructural change, which has led to significant progress in social and human development, as evidenced by the progress of the Emerging and Growth Leading Economies (EAGLEs), also has a direct impact on environmental quality. This transformation is largely influenced by the quality of institutions, which may therefore moderate the relationship between structural change and environmental quality. This study examines the impact of structural change and institutional quality on CO2 emissions in these economies from 2000 to 2021, including the effect of their interaction. Using the ARDL-PMG model, control variables such as GDP, energy consumption and urbanization are included to account for the specific characteristics of these economies. The results show that GDP, energy consumption and urbanization contribute to higher emissions, while structural change and institutional quality directly reduce CO2 emissions. Moreover, their interaction creates a combined effect that amplifies this reduction, highlighting the synergy between structural transformation and the institutional framework, while emphasizing the need for coordinated action to better target environmental policies. Policy recommendations are derived from these empirical findings.http://www.sciencedirect.com/science/article/pii/S2665972725002387CO2 emissionsStructural changeInstitutional qualityModerating effectEmerging economies
spellingShingle Daghbagi Hamrouni
Radhouane Hasni
Imen Ouerghi
The moderating effect of institutional quality on the relationship between structural change and CO2 emissions in emerging economies
Environmental and Sustainability Indicators
CO2 emissions
Structural change
Institutional quality
Moderating effect
Emerging economies
title The moderating effect of institutional quality on the relationship between structural change and CO2 emissions in emerging economies
title_full The moderating effect of institutional quality on the relationship between structural change and CO2 emissions in emerging economies
title_fullStr The moderating effect of institutional quality on the relationship between structural change and CO2 emissions in emerging economies
title_full_unstemmed The moderating effect of institutional quality on the relationship between structural change and CO2 emissions in emerging economies
title_short The moderating effect of institutional quality on the relationship between structural change and CO2 emissions in emerging economies
title_sort moderating effect of institutional quality on the relationship between structural change and co2 emissions in emerging economies
topic CO2 emissions
Structural change
Institutional quality
Moderating effect
Emerging economies
url http://www.sciencedirect.com/science/article/pii/S2665972725002387
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