Habib Sekrafi and Asma Sghaier
The purpose of this paper is to evaluate the impact of corruption on the environmental quality in Tunisia. Indeed, the post-revolution period is characterized by a remarkable…
Abstract
Purpose
The purpose of this paper is to evaluate the impact of corruption on the environmental quality in Tunisia. Indeed, the post-revolution period is characterized by a remarkable increase in the rates of corruption.
Design/methodology/approach
The direct and indirect effects of control corruption on economic growth and CO2 emissions in Tunisia have been examined using the autoregressive distributed lag (ARDL) cointegration framework among corruption, growth and CO2 emissions.
Findings
Results substantiate a positive and significant relationship between control of corruption and economic growth, a negative and significant relationship between control of corruption and environmental quality (CO2) and a negative and significant relationship between control of corruption and energy consumption. The findings suggest that while the control of corruption contributes to economic growth, its positive effect could be transposed indirectly via its impacts on environmental quality.
Originality/value
A strategy against corruption will reduce CO2 emissions; however, its positive effect on economic growth indirectly contributes to reverse this relationship.
Details
Keywords
Nura Sani Yahaya, Mohd Razani Mohd‐Jali and Jimoh Olajide Raji
This study examines the role of financial development and its interaction with corruption in the environmental degradation of eight Sub-Saharan African countries from 2000–2014.
Abstract
Purpose
This study examines the role of financial development and its interaction with corruption in the environmental degradation of eight Sub-Saharan African countries from 2000–2014.
Design/methodology/approach
The study utilizes Pedroni cointegration and fully modified ordinary least squares (FMOLS) techniques for the estimation of the models.
Findings
The results of the cointegration test reveal that there exist long-run relationships among the variables in the model with the interaction of financial development and corruption, and in the model without interaction. The FMOLS estimates show that in the former model, the interaction of financial development with corruption is positively significant in determining the level of environmental degradation in those countries. Moreover, in the latter, financial development, trade openness, and corruption have a positive effect on their environmental degradation
Research limitations/implications
Unavailability of data, the study was limited to only eight Sub-Saharan African nations
Practical implications
The finding that financial development and its interaction with corruption have an adverse effect on the environments of the Sub-Saharan African countries implies the need to focus on how efficient credits are being allocated in those countries. For better management of environmental quality, this may require the implementation of policies that enhance credit allocation to users with energy-efficient technology and appliances that promote the quality of environments. In addition, stringent policies could be embarked upon to curtail all acts of corruption in the region for an efficient credit allocation and a better environment in the development of Sub-Saharan African society.
Originality/value
The dearth in empirical studies on the Sub-Saharan African countries motivates this study. In particular, little is known about the interaction effect of corruption and financial development on the environmental degradation of those countries, as the work on this is limited in the existing literature.