Democracy and Environmental Quality: Accounting for Transmission Channels

Somlanare Kinda

Journal of Economic Development, 2019, vol. 44, issue 2, 1-27

Abstract: This paper contributes to the controversial literature on democratic institutions and environmental quality. Despite an extensive literature, studies have not focused on the transmission channels by which democracy affect environmental quality. Using panel data from 1960 to 2008 in 122 developed and developing countries, results are as follows: First democratic institutions have opposite effects on environmental quality: a positive and direct effect on environmental quality and a negative indirect effect through domestic investments and income inequality. Second, the positive effect of democracy on environmental quality is higher in developed countries than in developing countries.

Keywords: Democratic Institutions; Air Pollution; Panel Data; Income Inequality; Domestic Investments; Foreign Direct Investment (FDI); Trade (search for similar items in EconPapers)
JEL-codes: F18 F64 Q56 (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:jed:journl:v:44:y:2019:i:2:p:1-27

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