Nexus between Economic Growth and CO2 Emission within the Preview of Institutional Quality: Some New Insights from

Abstract

The destructive role of institutional quality such as corruption has been considered an important factor for economic growth, particularly in the European Union, where such practices dealt with zero tolerance. Environmental degradation such as massive carbon emissions is stressing the global ecosystem, which has become a solemn issue for environmental policy makers. This research examines the institutional role in controlling corruption within the preview of CO 2 emissions-economic growth nexus for the European Union. The study evaluates the moderating impact of corruption on the relationship between CO 2 emissions and economic growth for the 19 Euro countries over the period 1984-2021, within the context of Auto Regressive Distributed Lag (ARDL) estimation. Empirical results infer that the moderating role of corruption is crucial in measuring the nexus between economic growth and CO 2 emissions due to better institutional quality of the European region. Furthermore, the results confirm that control over