Quality governance and carbon emissions
Description
We examine the causal link between quality governance indicators and carbon emissions through foreign direct investment in Africa from 1996 to 2020 using the 2SLS – IV regression. We established a positive causal effect of foreign direct investment on CO2 emissions loading from governance quality indicators (voice and accountability, political stability and absence of voice, governance effectiveness, the rule of law, regulatory quality, and corruption) and increase in fossil fuel energy consumption.
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We examine the causal link between quality governance indicators and carbon emissions through foreign direct investment in Africa from 1996 to 2020 using the 2SLS – IV regression. We established a positive causal effect of foreign direct investment on CO2 emissions loading from governance quality indicators (voice and accountability, political stability and absence of voice, governance effectiveness, the rule of law, regulatory quality, and corruption) and increase in fossil fuel energy consumption.