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Regulation, governance and the role of the informal sector in influencing environmental quality?
Södertörn University, School of Social Sciences, Economics. Stockholm School of Economics.ORCID iD: 0000-0003-0573-5287
University of Reading, Reading, UK.
University of Ghana Business School, Madina, Ghana.
2020 (English)In: Ecological Economics, ISSN 0921-8009, E-ISSN 1873-6106, Vol. 173, article id 106649Article in journal (Refereed) Published
Abstract [en]

We investigate the effect of the informal sector and a range of governance indicators on both global and local pollutants for a panel of 58 countries during 1996-2011. The analysis employs a fixed effects-instrumental variable generalized method of moments approach. We find that the size of the informal sector has a significant impact on environmental quality, which is conditional on the level of economic development. For developing countries, the informal sector has a significant positive impact on local pollutants, whereas for the developed countries the informal sector has a significantly negative effect on global pollutants. The findings also reveal that the impact of governance depends on the type of governance measure, the level of economic development and type of pollutant. Control of corruption emerges as the single most important factor especially in the non-OECD countries in improving environmental quality. We argue that the efficacy of an environmental policy for a country with a large informal sector will be low if the policy measures do not address governance, size of the informal sector and environmental policy targets.

Place, publisher, year, edition, pages
Elsevier, 2020. Vol. 173, article id 106649
Keywords [en]
Environmental quality, Informal sector, Governance
National Category
Economics
Research subject
Politics, Economy and the Organization of Society
Identifiers
URN: urn:nbn:se:sh:diva-40303DOI: 10.1016/j.ecolecon.2020.106649Scopus ID: 2-s2.0-85081324254OAI: oai:DiVA.org:sh-40303DiVA, id: diva2:1411567
Funder
Swedish Research Council FormasAvailable from: 2020-03-04 Created: 2020-03-04 Last updated: 2020-03-31Bibliographically approved

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Bali Swain, Ranjula

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CiteExportLink to record
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Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • harvard-anglia-ruskin-university
  • apa-old-doi-prefix.csl
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf