The Green Divide — How Environmental Performance and Governance Shape Unequal Growth Trajectories

Hammed Musibau, Joaquin Vespignani and Maria Yanotti ()
Additional contact information
Maria Yanotti: University of Tasmania

Adelaide Economics Working Papers from Adelaide University, School of Economics

Abstract: We investigate the impact of environmental performance on economic growth and assess the role of governance quality using a global dataset of 206 countries between 1995 and 2022. To address endogeneity concerns, we employ fixed effects estimation and Lewbel’s heteroskedasticity-based two stage least squares estimator, which is well suited for settings where external instruments are unavailable. The findings show that improvements in environmental performance, measured through greenhouse gas emissions per capita and emissions intensity, exert a positive and statistically significant effect on GDP per capita growth. This result is robust across alternative specifications, inequality-based heterogeneity analyses, and regional subsamples.

Keywords: Environmental performance; Governance; Economic growth; Emissions; Global panel (search for similar items in EconPapers)
Date: 2026-08
References: Add references at CitEc
Citations:

Downloads: (external link)
https://media.adelaide.edu.au/economics/papers/doc/wp2026-10.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:adl:wpaper:2026-10

Access Statistics for this paper

More papers in Adelaide Economics Working Papers from Adelaide University, School of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Chansik Yoon () and Ruby Nguyen ().