Threshold Effects of Economic Growth on Air Pollution under Regimes of Corruption

Shu-Chen Chang () and Teng-Yu Chang ()
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Shu-Chen Chang: Department of Business Administration, National Formosa University, Yunlin, Taiwan
Teng-Yu Chang: Graduate Institute of Business and Management, National Formosa University

Economics Bulletin, 2012, vol. 32, issue 1, 1046-1059

Abstract: This study uses the data from 57 countries during 1995 to 2005 to investigate the effects of economic growth on air pollution under regimes of corruption. A threshold and bootstrap approach is used to test whether the threshold effects exist in a pollution model. Our results show that economic growth has a single threshold effect on CO2 and N2O emissions, while having linear effect on PM10 and CH4 emissions. Increasing in economic growth would raise CO2 emissions in all sample countries, but could decline N2O emissions. Moreover, the effects in countries with high-corruption are greater than those in countries with low-corruption.

Keywords: Corruption; Economic growth; Panel data; Threshold model (search for similar items in EconPapers)
JEL-codes: Q4 Q5 (search for similar items in EconPapers)
Date: 2012-03-28
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Citations: View citations in EconPapers (2)

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