The Relationship Between Environmental Quality and Institutional Quality: An Application on BRICS-T
Chapter from the book:
Güngör,
B.
&
Küçük,
Ö.
(eds.)
2024.
Climate Perspectives for a Sustainable Future.
Synopsis
This study investigates the relationship between institutional quality and environmental quality. An empirical analysis has been conducted on the BRICS countries, including Brazil, Russia, China, India, and South Africa, with Turkey also being included in the analysis. Data from the period 2006-2022 have been utilized. Government effectiveness is used as the indicator for institutional quality, while the Environmental Performance Index (EPI) is used as the indicator for environmental quality. The relationship between the two indicators is investigated using the Dumitrescu & Hurlin causality test. The results show a one-way causality from government institutional quality to environmental quality. Therefore, a causal relationship exists from government effectiveness to the Environmental Performance Index. Additionally, there is a long-term relationship between government effectiveness and the Environmental Performance Index.