Institutional Quality's Contribution to Environmental Degradation" China's Systematic Approach to CO2

Abstract

One key research area has been the discussion of the relationship between governance and the environment. The question of how much institutional quality, or IQ, contributes to environmental degradation is still up for debate. This study, in contrast to others, looks at the asymmetric impact of IQ on CO2 in China between 2000 and 2023. The relationship between IQ and CO2 emissions is empirically investigated using the nonlinear autoregressive distributive lag model. According to reported data, CO2 is positively impacted by negative shocks and negatively impacted by positive shocks. Results indicate that while energy consumption and economic growth are increasing CO2, a higher IQ is significantly lowering CO2. This research is unique and offers valuable insights into how Chinese institutions are doing with regard to environmental issues. This study also has significant policy implications.