Environmental Quality, Corruption and Industry Growth: The Global Perspective

Min Cui


Department of Economics, Xi’an University of Finance and Economics, Xi’an, Shaanxi (China)

Jun-Sheng Wang


Department of Economics, Xi’an University of Finance and Economics, Xi’an, Shaanxi (China)

Chun-Ping Chang

cpchang@g2.usc.edu.tw
Shih Chien University, Kaohsiung (Taiwan, Province of China)
https://orcid.org/0000-0003-1782-4551

Abstract

This paper investigates the causal relationship between environmental quality and corruption for 129 countries, using the panel cointegration and panel-based error correction models for the period 2002-2015. In the paper, we use EPI, EHI, and EVI to represent environmental quality, which are more reasonable and comprehensive. We further take industry growth into consideration and investigate its impact on environmental quality. Our results corroborate that there exists a long-term equilibrium cointegrated relationship among the variables, both of corruption and industry growth have a negative effect on environmental quality and the corruption can seriously decrease environmental quality in the long term, while industry growth weakens environmental quality no matter in the short or long run.


Keywords:

environmental quality, corruption, industry growth, panel cointegration, causality

ALEXANDRA L., 2010, Corruption and the environmental Kuznets Curve: Empirical evidence for sulfur, in: Ecological Economics, 69, p. 2191-2201.
DOI: https://doi.org/10.1016/j.ecolecon.2010.06.004   Google Scholar

ANUT K. B., MOHAMMAD R. F., MARCEL T., 2012, Pollution, shadow economy and corruption: Theory and evidence, in: Ecological Economics, 75, p. 114-125.
DOI: https://doi.org/10.1016/j.ecolecon.2012.01.007   Google Scholar

ANITYASARI M., RACHMAT A. N., 2015, Lesson Learnt from Top-down Selection of Medium Enterprises for Green Industry Pilot Project in Surabaya, in: Industrial Engineering and Service Science, 04, p. 54-61.
DOI: https://doi.org/10.1016/j.promfg.2015.11.014   Google Scholar

BISWAS A. K., THUM M., 2017, Corruption, environmental regulation and market entry, in: Environment & Development Economics, 22, p. 66-83.
DOI: https://doi.org/10.1017/S1355770X16000218   Google Scholar

BOUTILIER R. G., 2017, Original article: Raiding the honey pot: The resource curse and weak institutions at the project level, in: The Extractive Industries and Society, 04, p. 310-320.
DOI: https://doi.org/10.1016/j.exis.2017.02.002   Google Scholar

BEKHET H. A., OTHMAN N. S., 2018, The role of renewable energy to validate dynamic interaction between CO2 emissions and GDP toward sustainable development in Malaysia, in: Energy Economics, 72, p. 47-61.
DOI: https://doi.org/10.1016/j.eneco.2018.03.028   Google Scholar

CHERNI J. A., 2002, Economic Growth Versus the Environment : The Politics of Wealth, Health and Air Pollution, Palgrave Macmillan: Houndmills, Basingstoke, Hampshire.
  Google Scholar

CHAABOUNI S., SAIDI K., 2017, The dynamic links between carbon dioxide (CO2) emissions, health spending and GDP growth: A case study for 51 countries, in: Environmental Research, 158, p. 137-144.
  Google Scholar

CHAABOUNI S., SAIDI K., 2017, The dynamic links between carbon dioxide (CO2) emissions, health spending and GDP growth: A case study for 51 countries, in: Environmental Research, 158, p. 137-144.
DOI: https://doi.org/10.1016/j.envres.2017.05.041   Google Scholar

DREWS S., ANTAL M., VAN D. B., JEROEN C.J.M., 2018, Analysis: Challenges in Assessing Public Opinion on Economic Growth Versus Environment: Considering European and US Data, in: Ecological Economics, 146, p. 265-272.
DOI: https://doi.org/10.1016/j.ecolecon.2017.11.006   Google Scholar

ELLIOTT L., 2007, Transnational Environmental Crime in the Asia-Pacific: an “under secutized” security problem?, in: The Pacific Review, 20, p. 499-522.
DOI: https://doi.org/10.1080/09512740701671995   Google Scholar

ELLIOTT L., 2011, Transnational Environmental Crime: Applying network theory to an investigation of illegal trade, criminal activity and law enforcement responses, Transnational Environmental Crime Project, Working paper, no 1.
  Google Scholar

ENGLE R. F., GRANGER C. W. G., 1987, Econometric forecasting: a brief survey of current and future techniques, in: Climate Change, 11, p. 117-139.
DOI: https://doi.org/10.1007/978-94-009-4011-6_6   Google Scholar

FREDRIKSSON P. G., HERMAN R.J. V., ELBERT D., 2004, Corruption and energy efficiency in OECD countries: theory and evidence, in: Journal of Environmental Economics and Management, 47, p. 207-231.
DOI: https://doi.org/10.1016/j.jeem.2003.08.001   Google Scholar

FAIZ R., MUHAMMAD N., FAIZA K., 2012, Nexus between corruption and regional Environmental Kuznets Curve: the case of South Asian countries., in: Environment, Development and Sustainability, 14, p. 827.
DOI: https://doi.org/10.1007/s10668-012-9356-6   Google Scholar

FRIEDL B., GETZNER M., 2003, Determinants of CO2 emissions in a small open economy, in: Ecol. Econ, 01, p. 133-148.
DOI: https://doi.org/10.1016/S0921-8009(03)00008-9   Google Scholar

HUANG Y., LIU L., 2014, Fighting corruption: A long-standing challenge for environmental regulation in China, in: Environmental Development, 06, p. 1-3.
DOI: https://doi.org/10.1016/j.envdev.2014.06.001   Google Scholar

INFANTE D., SMIRNOVA J., 2016, Environmental Technology Choice in the Presence of Corruption and the Rule of Law Enforcement, in: Transformations in Business and Economics, 15, p. 214-224.
  Google Scholar

KAO C., CHIANG M. H., 2000, On the estimation and inference of a cointegrated regression in panel data, in: Adv Econometrics, 15, p. 179-222.
DOI: https://doi.org/10.1016/S0731-9053(00)15007-8   Google Scholar

LORENZO P., 2008, Corruption, Development and the Environment, Vrige University.
  Google Scholar

NIU J., CHANG C. P., YANG X. Y.,WANG J. S., 2017, The long relationships between energy efficiency and environmental performance: Global evidence, in: Energy and Environment, 06, p. 1-19.
  Google Scholar

OLE M. L., MARINA P., 2018, Do Political Institutions Moderate the GDP-CO2 Relationship? in: Ecological Economics, 145, p. 441-450.
DOI: https://doi.org/10.1016/j.ecolecon.2017.11.014   Google Scholar

PEDRONI P., 2004, Panel cointegration: asymptotic and finite sample properties of fooled time series tests with an application to the PPP hypothesis, in: Econometric Theory, 20, p. 597-625.
DOI: https://doi.org/10.1017/S0266466604203073   Google Scholar

PHILLIPS P. C. B., HANSEN B. E., 1990, Statistical inference in instrumental variables regression with the I (1) process, in: Rev Econ Dtud, 57, p. 99-125.
DOI: https://doi.org/10.2307/2297545   Google Scholar

WEI B. L., BIN C., JIN Y. 2011, Temporal and Spatial Analysis of Integrated Energy and Environment Efficiency in China Based on a Green GDP Index, in: Energies, 9, p.1376-1390.
DOI: https://doi.org/10.3390/en4091376   Google Scholar

ZHANG Y. J., JIN Y. L., CHEVALLIER J., SHEN B., 2016, The effect of corruption on carbon dioxide emissions in APEC countries: A panel quantile regression analysis, in: Technological Forecasting & Social Change, 112, p. 220-227.
DOI: https://doi.org/10.1016/j.techfore.2016.05.027   Google Scholar

Download


Published
2021-01-04

Cited by

Cui, M., Wang, J.-S., & Chang, C.-P. (2021). Environmental Quality, Corruption and Industry Growth: The Global Perspective. Problemy Ekorozwoju, 16(1), 29–37. https://doi.org/10.35784/pe.2021.1.03

Authors

Min Cui 

Department of Economics, Xi’an University of Finance and Economics, Xi’an, Shaanxi China

Authors

Jun-Sheng Wang 

Department of Economics, Xi’an University of Finance and Economics, Xi’an, Shaanxi China

Authors

Chun-Ping Chang 
cpchang@g2.usc.edu.tw
Shih Chien University, Kaohsiung Taiwan, Province of China
https://orcid.org/0000-0003-1782-4551

Statistics

Abstract views: 26
PDF downloads: 12