Governance and Carbon Dioxide Emissions: The Mediating Role of Mitigation Finance in Developing Countries

Astrid Yamila Loré Acosta and Hyun Jeong Kim
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Astrid Yamila Loré Acosta: Inha University, Republic of Korea
Hyun Jeong Kim: Inha University, Republic of Korea

Journal of Economic Development, 2026, vol. 51, issue 1, 145-162

Abstract: Using panel data and a mediation framework, this study explores the indirect and direct impact of governance dimension on carbon emissions and its indirect effects through mitigation finance in developing countries. The results demonstrate a heterogenous effects of the governance dimensions, regulatory quality associated with lower emissions and greater mitigation finance, with other dimensions linked to increased carbon emissions. These findings highlight the trade-offs between government development and economic growth, particularly when they are not aligned with environmental objectives. Overall, this study underscores the role of regulatory quality in shaping emissions reduction and mitigation finance allocation.

Keywords: Mitigation Finance; Governance; Carbon Dioxide Emissions; Developing Countries (search for similar items in EconPapers)
JEL-codes: O44 Q54 Q56 Q58 (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:ris:jecdev:022432

DOI: 10.35866/caujed.2026.51.1.006

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