The Impact of Institutional Quality and Human Development on Environmental Sustainability in MENA Countries

Document Type : Original Article

Authors

1 Ph.D. Candidate, Department of Economics, AR.C., Islamic Azad University, Arak, Iran.

2 Associate Professor, Department of Economics, AR.C., Islamic Azad University, Arak Iran.

Abstract

This study examines the relationship between institutional quality, human development, and environmental sustainability by investigating the effects of three components—the rule of law, regulatory quality, and control of corruption—on carbon dioxide (CO₂) emissions in MENA countries. The present study explores the vital role of these factors, along with gross domestic product and renewable energy consumption, in environmental sustainability across MENA countries over the period from 2008 to 2023. To this end, the study employs fixed effects, random effects, the generalized method of moments (GMM), Driscoll–Kraay standard errors, as well as fully modified ordinary least squares (FMOLS) and dynamic ordinary least squares (DOLS) techniques to examine the long-run relationships among the variables.
 The findings support the significant impact of institutional quality components, human capital, and other variables on the improvement of environmental sustainability in MENA countries. Furthermore, the Environmental Kuznets Curve (EKC) hypothesis is confirmed for the relationship between economic growth and environmental sustainability in these countries. It is recommended that MENA countries adopt necessary policies aimed at enhancing institutional quality and increasing renewable energy consumption to improve environmental sustainability.

Keywords

References

آهنگری، نوید؛ سلیمانی، منصور و شیخی، غفور. (1403). تأثیر پیشرفت فناوری و کیفیت نهادی بر پایداری محیط­زیستی و اجتماعی شهر تهران در عصر دیجیتال. پژوهش و فناوری محیط زیست. (15)9، 148-131.
جعفری صمیمی، احمد؛ زروکی، شهریار و امیری لرگانی، محمد. (1403). تأثیر یارانه انرژی کل، یارانه انرژی‌های تجدیدپذیر و تجدیدناپذیر بر محیط‌زیست در منتخبی از کشورهای جهان. نظریه­های کاربردی اقتصاد. (1)11­، 174-149.
جواهری، بختیار؛ عزیزی، وحید و شاه ویسی، حمیرا. (1403). آزادی سیاسی، توسعه انسانی و پایداری محیط زیست در ایران. فصلنامه اقتصاد با ثبات. (1)5، 149-116.
دل گرم، عاطفه؛ پهلوانی، مصیب و رادنیا، مرجان. (1403). تأثیر کیفیت نهادها بر کاهش انتشار گاز دی اکسید کربن(منتخبی از کشورهای عضو پیمان شانگهای). فصلنامه علوم محیط زیست. (1)9، 7937-7919.
گلدانی، مهدی؛ محمدی، مرتضی و علوی، سید احسان. (1404). سیاست‌گذاری انرژی در شرایط بحران؛ بررسی و تحلیل دو متغیر شدت انرژی و مصرف انرژی با رویکرد داده کاوی در ایران.  اقتصاد دفاع و توسعه پایدار، 10(34)، 139-175.
صادقی، سید کمال و رشید عج عج، حیدر حمید. (1403). تحلیل تاثیر نامتقارن درآمدسرانه، جریان ورودی سرمایه و قیمت نفت بر انتشار CO2 در ایران: رویکرد NARDL. نظریه های کاربردی اقتصاد. (4)11، 154-137.
صیادی، محمد؛ ممی پور، سیاب؛ گلوی، مریم و قائد، ابراهیم. (1402). تاثیر متغیرهای اقتصادی- نهادی- انرژی بر ردپای اکولوژیکی،  در کشورهای منتخب منطقه منا. پژوهشنامه اقتصاد و برنامه­ریزی. (2)28، 154-115.
Abid, M.­ (2017). Does economic, financial and institutional developments matter for environmental quality? A comparative analysis of EU and MEA countries, Journal of Environmental Management, 188(4), 183–194.
Acheampong, A. O. Adams, S. Boateng, E. (2019). Do globalization and renewable energy contribute to carbon emissions mitigation in Sub-Saharan Africa? Science of The Total Environment, 677(3), 436–446.
Ahmed, F. Kousar, S. Pervaiz, A. Shabbir, A. (2022). Do institutional quality and financial development affect sustainable economic growth? Evidence from South Asian countries, Borsa Istanbul Review. 22(1), 189–196.
Ahmad, M. Ahmad, Z. Yang, X. Hussain, M. Sinha, A. (2022). Financial development and environmental degradation: Do human capital and institutional quality make a difference? Gondwana Research, 105(9), 299–310.
Ahmed, Z. Wang, Z. (2019). Investigating the impact of human capital on the ecological footprint in India: An empirical analysis, Environmental Science and Pollution Research, 26(4), 26782–26796.
Al-Mulali, U. Weng-Wai, C. Sheau-Ting, L.  Muhammad, A.H. (2015). Investigating the environmental Kuznets curve (EKC) hypothesis by utilizing the ecological footprint as an indicator of environmental degradation. Ecological Indicators, 48(3), 315–323.
Asongu, S.A. Le Roux, S. Biekpe, N (2017). Environmental degradation, ICT and inclusive development in Sub-Saharan Africa. Energy Policy, 111(4), 353–361.
Asongu, S.A. Odhiambo, N.M. (2019). Environmental degradation and inclusive human development in sub-Saharan Africa. AGDI Working Paper. No. WP/18/017, 25–34.
Azam, M. Liu, L. Ahmad, N. (2021). Impact of institutional quality on environment and energy consumption: Evidence from developing world. Environment, Development and Sustainability, 23(5), 1646–1667.
Bhattacharya, M. Churchill, S.A. Paramati, S.R. (2019). The dynamic impact of renewable energy and institutions on economic output and CO2 emissions across regions. Renewable Energy, 111(2), 157–167.
Bano, S. Zhao, Y. Ahmad, A. Wang, S. Liu, Y. (2018). Identifying the impacts of human capital on carbon emissions in Pakistan. Journal of Cleaner Production, 183(2), 1082–1092.
Blundell, R. Bond, S. (2009). GMM estimation with persistent panel data: An application to production functions. Economic Review, 9(3), 321-340.
Cihat, K. Setareh, K. Salih, K. (2021). The role of financial efficiency in renewable energy demand: Evidence from OECD countries. Journal of Environmental Management, 285(2), 125-146.
Çakar, N.D. Gedikli, A.  Erdogan, S. Yildirim, D.C. (2021). Exploring the nexus between human capital and environmental degradation: The case of EU countries. Journal of Environmental Management, 295(4), 113-138.
Fomba, B.K. Talla, D. N. D. F. Ningaye, P. (2023). Institutional Quality and Education Quality in Developing Countries:­ Effects and Transmission Channels. Journal of the Knowledge Economy, 14(4), 86–115.
Gurluk, S. (2009). Economic growth, industrial pollution and human development in the Mediterranean Region. Ecological Economics, 68(8), 2327–2335.
Hao, L. N. Umar, M.  Khan, Z.  Ali, W. (2021). Green growth and low carbon emission in G7 countries: How critical the network of environmental taxes, renewable energy and human capital is? Science of The Total Environment. 752(15), 141853.
Hu, K. Raghutla, C. Chittede, K. R.  Zhang, R.  Koondhar, M. A. (2021). The effect of energy resources on economic growth and carbon emissions: A way forward to carbon neutrality in an emerging economy. Journal of Environmental Management, 298(15), 113-133.
Haini, H. (2021). Examining the impact of ICT, human capital and carbon emissions: Evidence from the ASEAN economies. International Economics, 166(2), 116–125.
Ibrahiem, D. M. Hanafy, S. A. (2021). Do energy security and environmental quality contribute to renewable energy? The role of trade openness and energy use in North African countries. Renewable Energy, 179(2), 667–678.
Kao, C. Chiang, M. H. (2000). On the Estimation and Inference of a Cointegrated Regression in Panel Data. In Nonstationary Panels, Panel Cointegration, and Dynamic Panels (Advances in Econometrics); Baltagi, B. Ed. JAI Press: Amsterdam, The Netherlands, 161–178.
Kassouri, Y. (2020). Altıntaş, H. Human well-being versus ecological footprint in MENA countries: A trade-off? Journal of Environmental Management, 263(2), 19-35.
Liu, G. Brown, M. T. (2017). Casazza, M. Enhancing the sustainability narrative through a deeper understanding of sustainable development indicators. Sustainability, 9(6), 147-160.
Li, T. Wang, Y. (2018). Growth channels of human capital: A Chinese panel data study. China Economic Review, 51(3), 309–322.
Mrabet, Z. Alsamara, M.  Mimouni, K.  Mnasri, A. (2021). Can human development and political stability improve environmental quality? New evidence from the MENA region. Economic Modelling, 94(7), 28–44.
Mukherjee, S. Chakraborty, D. (2009). Environment, Human Development and Economic Growth after Liberalisation: An Analysis of Indian States. International Journal Globol. Envirument, 9(3), 20-49.
Mohsin, M. Kamram, H. W.  Nawaz, M. A.  Hussain, M. S.  Dahri, A. S. (2021). Assessing the impact of transition from nonrenewable to renewable energy consumption on economic growth-environmental nexus from developing Asian economies. Journal of Environmental Management, 284(3), 111-125.
Nguyen, K. H. Kakinaka, M. (2019). Renewable energy consumption, carbon emissions, and development stages: Some evidence from panel cointegration analysis. Renewable Energy, 132(4), 1049–1057.
Opeyemi, A. Uchenna, E. Simplice, A. (2019). Renewable energy, trade performance and the conditional role of finance and institutional capacity in sub-Sahara African countries. Energy Policy, 132(5), 490–498.
Opoku, E. E. O. Dogah, K. E. Aluko, O. A. (2022). The contribution of human development towards environmental sustainability. Energy Economics, 106(4), 105-128.
Qudrat-Ullah, H. Nevo, C. M. (2021). The impact of renewable energy consumption and environmental sustainability on economic growth in Africa. Energy Reports, 7(3), 3877–3886.
Radmehr, R. Henneberry, S. R. Shayanmehr, S. (2025). Renewable Energy Consumption, CO2 Emissions, and Economic Growth Nexus: A Simultaneity Spatial Modeling Analysis of EU Countries. Structural Change and Economic Dynamics, 57(3), 13–27.
Rahman, M. M. (2020). Environmental degradation: The role of electricity consumption, economic growth and globalisation. Journal of Environmental Management, 253(7), 109742.
Rahman, M. M. Vu, X. B. (2022). The nexus between renewable energy, economic growth, trade, urbanisation and environmental quality: A comparative study for Australia and Canada. Renewable Energy, 155(6), 617–627.
Rahman, M. M. Alam, K. (2021). Clean energy, population density, urbanization and environmental pollution nexus: Evidence from Bangladesh. Renewable Energy, 172(5), 1063–1072.
Rahman, M. M. Nepal, R. Alam, K. (2021). Impacts of human capital, exports, economic growth and energy consumption on CO2 emissions of a cross-sectionally dependent panel: Evidence from the newly industrialized countries (NICs). Environmental Science & Policy, 121(4), 24–36.
Rahman, M. M. Sultana, N. (2022). Velayutham, E. Renewable energy, energy intensity and carbon reduction: Experience of large emerging economies. Renewable Energy, 184(6), 252–265.
Roodman, D. (2009). How to do xtabond2: An introduction to difference and system GMM in stata. Stata Journal, 9(3), 86–136.
Sadik-Zada, E. R. Gatto, A. (2023). Grow first and Clean up Later? Dropping Old 55. Paradigms and Opening Up New Horizons of Sustainable.  Sustainability, 15(2), 3595.
Sadik-Zada, E. R. Gatto, A. (2023). The puzzle of greenhouse gas footprints of oil abundance. Socio-Economic Planning Sciences, 75(4), 100-116.
Salman, M. Long, X. Dauda, L. Mensah, C. N. (2019). The impact of institutional quality on economic growth and carbon emissions: Evidence from Indonesia, South Korea and Thailand. Journal of Cleaner Production, 241(3), 118-131.
Sakiko, F. (2003). The Human Development Paradigm: Operationalizing Sen’s Ideas on Capabilities. Feminist Economics, 9(2), 301–317.
Tran, N.V. Tran, Q. V. Do, L. T. T. Dinh, L. H. Do, H. T. T. (2019). Trade off between environment, energy consumption and human developemnt: Do levels of economic development matter? Energy, 173(4), 483–493.
Uzar, U. (2020). Political economy of renewable energy: Does institutional quality make a difference in renewable energy consumption? Energy, 155(4), 591–603.
Wang, R. Mirza, N. Vasbieva, D. G. Abbas, Q. Xiong, D. (2020). The nexus of carbon emissions, financial development, renewable energy consumption, and technological innovation: What should be the priorities in light of COP Agreements? Journal Environoment. Management. 271(3), 111-127.
World Development Indicators; World Bank: Washington, DC, USA, 2021.
Yao, Y. Ivanovski, K. Inekwe, J. Smyth, R. (2020) Human capital and CO2 emissions in the long run. Energy Economic. 9(1), 104-121.
Zhang, L. Godgil, D.I. Bibi, M. Khan, M. K. Sarwat, S. Anser, M. K. (2021). Caring for the environment: How human capital, natural resources, and economic growth interact with environmental degradation in Pakistan? A dynamic ARDL approach. Science of The Total Environment. 7(7), 145-162.
اقتصاد دفاع و توسعه پایدار
Volume 11, Issue 40
July 2026
Pages 9-36

Files

Share

How to cite

Statistics