Impact of Institutional Factors on Environmental Quality in European Union

Zulfukar Aytac Kisman (), Yavuz Ozek (), Tayfur Bayat () and Ziya Kivanc Kirac ()
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Zulfukar Aytac Kisman: Firat University, Elazig, Turkiye
Yavuz Ozek: Firat University, Elazig, Turkiye
Tayfur Bayat: Inonu University, Malatya, Turkiye
Ziya Kivanc Kirac: Firat University, Elazig, Turkiye

International Journal of Energy Economics and Policy, 2025, vol. 16, issue 1, 51-59

Abstract: Environmental quality deterioration due to negative externalities arising from the economic growth process can be minimized in economies with high institutional quality. This study examines the institutional factors affecting environmental quality in European Union countries in the period 2002-2022. According to the panel unit root test, regulatory quality and voice and accountability variables are stationary at level values. In the short- run, there is no causality from institutional quality determinants (Control of Corruption, Rule of Law, Regulatory Quality, Voice and Accountability) to environmental quality in all European Union countries. However, in the long-run, there is causality from institutional factors to environmental quality as a whole. According to the panel parameter estimation method sensitive to cross-sectional dependence, institutional factors have no effect on environmental quality in Bulgaria, Croatia, Estonia, France, Germany, Sweden. In Finland, Ireland and Spain, institutional factors have the highest impact on environmental quality.

Keywords: Environmental Quality; Institutional Factors; European Union; Environmental Policy Making; Panel Data (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eco:journ2:v:16:y:2025:i:1:id:21567

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DOI: 10.32479/ijeep.21567

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