The Impact of Environmental Litigations on Emissions

Enric Cervera () and Inmaculada Martínez-Zarzoso ()
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Enric Cervera: University Jaumé I
Inmaculada Martínez-Zarzoso: University Jaumé I & University of Goettingen
Authors registered in the RePEc Author Service: Inmaculada Martínez-Zarzoso

No 2024.16, Working Papers from International Network for Economic Research - INFER

Abstract: This paper examines the impact of environmental litigation outcomes on greenhouse gas emissions, which are the main source of global warming. The empirical analysis is based on the stochastic version of the Impact, Population, Affluence Technology model, estimated using panel data and instrumental variables methods. The data are collected for a cross-section of countries over the period from 1996 to 2018. The results show that once litigations have been decided, emissions decrease in the whole sample, including high-income and middle-income countries. The results hold when the past number of litigation claims/fillings are used as instrumental variables. The robustness checks that consist of adding proxies for environmental regulations and estimating subsamples confirm the results. These outcomes have important policy implications for global warming issues.

Keywords: GHG emissions; litigation decisions; IPAT; panel data; instrumental variables (search for similar items in EconPapers)
JEL-codes: F (search for similar items in EconPapers)
Pages: 36 pages
Date: 2024
New Economics Papers: this item is included in nep-env
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