How Institutional Quality Influences the Economic Development-Environmental Quality Relationship in Oil-Rich CountriesA Non-Linear Panel Threshold Regression Study

بوجانة رضا حمزة

Article Details

How Institutional Quality Influences the Economic Development-Environmental Quality Relationship in Oil-Rich CountriesA Non-Linear Panel Threshold Regression Study

Authors:

بوجانة رضا حمزة

Publisher:

Université Ahmed Draya d'Adrar

Journal:

مجلة النمو الاقتصادي والمقاولاتية Vol.8 Issue 3, pp.86-95

Document Type:

Article

Publication Date:

10/2025

Document Language:

English

Document ID (Org No.):

2001602318

pISSN:

2716-8662

Keywords:

Abstract:

 This paper investigates how institutional quality moderates the relationship between economic growth and environmental quality in oil-dependent countries (some of the highest per capita CO₂ emitters in the world) using a Panel Threshold Regression (PTR) model from 20 oil-dependent economies during the period 1996–2023. The results reveal that economic development generally increases CO₂ emissions, but this negative effect is substantially reduced when institutional quality surpasses a certain level; in line with the non-linear relationship: countries with better institutions can soften the environmental costs of growth, whereas countries with weak governance structures suffer from a steeper trade-off between economic growth and environmental sustainability. The paper also demonstrates that human capital development, trade openness, and financial development help to lower emissions, while electricity consumption continues to be an important driver of environmental degradation. This study contributes to the Environmental Kuznets Curve debate by demonstrating how institutional quality mediates the relationship between economic development and environmental quality in oil-dependent economies using a synthesized governance index and considering threshold effects.

Article Details

How Institutional Quality Influences the Economic Development-Environmental Quality Relationship in Oil-Rich CountriesA Non-Linear Panel Threshold Regression Study

Authors:

بوجانة رضا حمزة

Publisher:

Université Ahmed Draya d'Adrar

Journal:

مجلة النمو الاقتصادي والمقاولاتية Vol.8 Issue 3, pp.86-95

Document Type:

Article

Publication Date:

10/2025

Document Language:

English

Document ID (Org No.):

2001602318

pISSN:

2716-8662

Co2 emissions

economic development

institutional quality

Oil rich countries

PTR

Issues

Article Details

How Institutional Quality Influences the Economic Development-Environmental Quality Relationship in Oil-Rich CountriesA Non-Linear Panel Threshold Regression Study

Authors: بوجانة رضا حمزة

Publisher: Université Ahmed Draya d'Adrar

Journal: مجلة النمو الاقتصادي والمقاولاتية Vol.8 Issue 3, pp.86-95

Document Type: Article

Publication Date: 10/2025

Document Language: English

Document ID (Org No.): 2001602318

pISSN: 2716-8662

Co2 emissions

economic development

institutional quality

Oil rich countries

PTR

Issues

Authors:

بوجانة رضا حمزة

Publisher:

Université Ahmed Draya d'Adrar

Journal:

مجلة النمو الاقتصادي والمقاولاتية Vol.8 Issue 3, pp.86-95

Document Type:

Article

Publication Date:

10/2025

Document Language:

English

Document ID (Org No.):

2001602318

pISSN:

2716-8662