Rule of law and CO2 emissions: A comparative analysis across 65 belt and road initiative(BRI) countries

This article mainly compares different effects of political stability, corruption control and rule of law on CO2 emissions across 65 belt and road initiative countries from 2000-2016. We utilize across low income (LI), lower middle(LM), upper middle(UM) and high income (HI)countries. The results show that institutional factors such as political stability, corruption control and rule of law are highly important in lowering carbon emissions and improving environmental quality. The interacting effect between political stability and rule of law can reduce CO2 emissions. Foreign direct investment (FDI) shows a heterogeneous effect on carbon emissions across different income groups, confirming Pollution Haven and Pollution Halo hypothesis. Trade openness reduces CO2 emissions in low income and high income countries, which increases CO2 emissions in lower-middle income countries. It is important to enhance the enforcement of environmental law to decrease CO2 emissions. (c) 2020 Elsevier Ltd. All rights reserved.

Automated summary

The study shows that institutional factors such as political stability, corruption control, and rule of law are crucial in reducing carbon emissions and improving environmental quality, with the interaction between political stability and rule of law having the potential to decrease CO2 emissions. Furthermore, foreign direct investment has heterogeneous effects on carbon emissions across different income groups, and trade openness has differing impacts on CO2 emissions in countries with varying income levels.