School of Finance, Shanghai Lixin University of Accounting and Finance, Shanghai, China.
Department of Economics and Business Administration, Division of Management and Administrative Science, University of Education, Lahore, Pakistan.
PLoS One. 2021 Oct 5;16(10):e0257631. doi: 10.1371/journal.pone.0257631. eCollection 2021.
The humans of modern society are enjoying the luxuries and comforts today but future generations will be facing a more polluted environment and scarcity of natural resources. So the effects of global warming and climatic changes are a major policy concern nowadays around the world. The majority of the literature treats the Carbon Dioxide emissions as an indicator of environmental deterioration but this paper considers the environmental performance index as an indicator of environment. This paper addresses the role of institutional reforms for environmental performance that is hardly discussed in the earlier literature. It is argued that a novel approach of institutional reforms can provide some useful insights for environmental performance in developing countries. There is wide agreement that institutional quality is crucial for economic sustainability but rarely focused to explore the impacts of institutional reforms on environmental performance. The institutional reforms are generally divided into two categories; economic and political reforms. This paper investigated the impact of each category of institutional reforms for environmental performance by using panel data of 122 developing economies for a period of 1996-2020. Difference in differences technique is applied to determine the impact of each category of reforms on the environment. It is found that economic and political reforms significantly contribute to protecting the environment in developing countries, and it will be a good policy option to reform the economic and political institutions to preserve the environment in these countries along with sustainable development.
现代人享受着当今的奢华和舒适，但后代将面临更污染的环境和自然资源的匮乏。因此，全球变暖与气候变化的影响是当今世界各国主要的政策关注点。大多数文献将二氧化碳排放视为环境恶化的指标，但本文将环境绩效指数视为环境的指标。本文探讨了制度改革对环境绩效的作用，这在早期文献中很少讨论。本文认为，制度改革的新方法可以为发展中国家的环境绩效提供一些有用的见解。人们普遍认为制度质量对经济可持续性至关重要，但很少关注探索制度改革对环境绩效的影响。制度改革通常分为两类：经济改革和政治改革。本文利用 1996-2020 年期间 122 个发展中经济体的面板数据，研究了每类制度改革对环境绩效的影响。采用差分法来确定每类改革对环境的影响。结果表明，经济和政治改革对发展中国家保护环境有显著贡献，改革经济和政治制度以保护这些国家的环境并实现可持续发展将是一个很好的政策选择。
