Pathways to carbon neutrality: how do government corruption and resource misallocation affect carbon emissions?

The government corruption and resource misallocation are important factors that inhibit economic transformation and environmental governance. Using a study sample of 30 provinces in China, this study employs the spatial econometric methods and threshold model to investigate the relationship between regional corruption, resource misallocation, and CO2 emission. The results show that there is a clear spatial dependence and correlation of CO2 emissions. Government corruption is a neglected contributor to carbon emissions, and this promotion effects are attributed to a promotion in resource misallocation. Moreover, the CO2 emissions are significantly promoted by local labor misallocation and capital misallocation, and the increasing effect is more pronounced in areas with high corruption. For spatial spillover effects, there is also no evidence that local CO2 emissions are significantly promoted by capital misallocation of surrounding areas. Additionally, the promoting effect of corruption on CO2 emissions is more pronounced in regions with weak environmental regulation, low marketization process, and the central and western of China. This work elucidates the mechanism of the impact of corruption on environmental pollution from the perspective of resource allocation, and provides an important reference for the effective management of environmental pollution.