Environmental performance and institutions quality: evidence from developed and developing countries

Abstract

This paper summarizes the arguments and counterarguments within the scientific discussion on the issue of the environmental performance and institutions quality.The main purpose of the research is an econometric model which incorporates macroeconomic and institutional variables in a sample of 187 countries observed during the period 2002-2015.Systematization literary sources and approaches for solving the problem of the difference of institutions quality and values of environment performance index.Methodological tools of the research methods were 14 years of research contain 48 developed countries and 139 developing countries.We used dynamic panel data models and especially the system Generalized Method of Moment (GMM) estimator of Arellano and Bover (1995).The research empirically confirms and theoretically proves that the level of growth proxied by the GDPG exerts a positive effect on the level of the environmental performance and institutional quality, (represented by control of corruption, regulatory quality, government effectiveness and rule of law and act), are significantly on the environment performance for the whole sample.Then, we prove that a good institutions quality enhance a significantly environment performance for developed countries.The results of the research can be useful for developing countries indicate that all variables reflected institution qualities decreased the environmental performance except for the government effectiveness which exerts a positive and significant effect.

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