Income Disparity, Institutional Effectiveness, and Environmental Decline in Post-Soviet Economies: Insights from VEC and VAR Causality Methods

Nermin Yaşar Başkaraağaç

Makale detayları

Income Disparity, Institutional Effectiveness, and Environmental Decline in Post-Soviet Economies: Insights from VEC and VAR Causality Methods

Yazarlar:

Nermin Yaşar Başkaraağaç

Yayıncı:

Ahmet Arif EREN

Ana Başlıklar:

Uygulamalı Makro Ekonometri

Dergi:

Fiscaoeconomia Vol.9 Issue 1, pp.1-12

Belge Tipi:

Makale

Yayın Tarihi:

2/2025

Belge Dili:

İngilizce

Document ID (Org No.):

2001341626

pISSN:

2564-7504

Anahtar kelimeler:

Özet:

 This research investigates how income distribution, and the quality of institutions influence environmental damage in post-Soviet economies from 1996 to 2020, employing advanced panel estimation techniques. To test Granger causality, we utilize two alternative methodological procedures: The VECM and the augmented level VAR model with integrated and co-integrated procedures of arbitrary orders suggested by Toda  Yamamoto 1995. Our primary finding suggests that although the VECM results do not uncover a causal relationship running from income distribution and institutional quality to CO2 emission, the Toda-Yamamoto approach indicates causality from the Gini index and the majority of the evaluated institutional quality indicatorssuch as control of corruption, government effectiveness, regulatory quality, and rule of lawto carbon dioxide emissions. Strong institutions bolster the enforcement of environmental policies, encourage sustainability, and mitigate emissions by ensuring compliance with regulations and responsible resource utilization. Addressing income inequality in observed countries is vital as it leads to consumption disparities and limited access to clean technologies, resulting in heightened carbon emissions and environmental degradation, especially pertinent in post-Soviet economies where adopting equitable economic policies alongside robust environmental regulations and governance is imperative.

 This research investigates how income distribution, and the quality of institutions influence environmental damage in post-Soviet economies from 1996 to 2020, employing advanced panel estimation techniques. To test Granger causality, we utilize two alternative methodological procedures: The VECM and the augmented level VAR model with integrated and co-integrated procedures of arbitrary orders suggested by Toda  Yamamoto 1995. Our primary finding suggests that although the VECM results do not uncover a causal relationship running from income distribution and institutional quality to CO2 emission, the Toda-Yamamoto approach indicates causality from the Gini index and the majority of the evaluated institutional quality indicatorssuch as control of corruption, government effectiveness, regulatory quality, and rule of lawto carbon dioxide emissions. Strong institutions bolster the enforcement of environmental policies, encourage sustainability, and mitigate emissions by ensuring compliance with regulations and responsible resource utilization. Addressing income inequality in observed countries is vital as it leads to consumption disparities and limited access to clean technologies, resulting in heightened carbon emissions and environmental degradation, especially pertinent in post-Soviet economies where adopting equitable economic policies alongside robust environmental regulations and governance is imperative.

 This research investigates how income distribution, and the quality of institutions influence environmental damage in post-Soviet economies from 1996 to 2020, employing advanced panel estimation techniques. To test Granger causality, we utilize two alternative methodological procedures: The VECM and the augmented level VAR model with integrated and co-integrated procedures of arbitrary orders suggested by Toda  Yamamoto 1995. Our primary finding suggests that although the VECM results do not uncover a causal relationship running from income distribution and institutional quality to CO2 emission, the Toda-Yamamoto approach indicates causality from the Gini index and the majority of the evaluated institutional quality indicatorssuch as control of corruption, government effectiveness, regulatory quality, and rule of lawto carbon dioxide emissions. Strong institutions bolster the enforcement of environmental policies, encourage sustainability, and mitigate emissions by ensuring compliance with regulations and responsible resource utilization. Addressing income inequality in observed countries is vital as it leads to consumption disparities and limited access to clean technologies, resulting in heightened carbon emissions and environmental degradation, especially pertinent in post-Soviet economies where adopting equitable economic policies alongside robust environmental regulations and governance is imperative.

 Bu çalışma, gelişmiş panel veri tekniklerini kullanarak 1996-2020 dönemi için post-Sovyet ekonomilerinde gelir eşitsizliği ve kurumsal etkinlik ile çevresel bozulma arasındaki nedensellik ilişkisini incelemektedir. Granger nedensellik sürecinin araştırılması için iki alternatif yöntem olarak Vektör Hata Düzeltme VHD modeli ve Toda  Yamamoto 1995 tarafından geliştirilen VAR modeli kullanılmıştır. Temel bulgumuz, VHD modeli sonuçlarına göre gelir eşitsizliği ve kurumsal kalite ile karbondioksit emisyonu arasında nedensel bir ilişki ortaya çıkmamasına rağmen Toda-Yamamoto yaklaşımı, Gini endeksinden ve yolsuzluk kontrolü, hükümet etkinliği, düzenleyici kalite ve hukukun üstünlüğü gibi kurumsal kalite göstergelerinden karbondioksit emisyonuna doğru ilerleyen bir nedensellik ilişkisinin bulunduğunu öne sürmektedir. Elde ettiğimiz sonuçlara esasen, gözlemlenen ülkelerde güçlü kurumlar, çevre politikalarının uygulanmasını destekler, sürdürülebilirliği teşvik eder ve düzenlemelere uyumu ve sorumlu kaynak kullanımını sağlayarak emisyonları azaltır. Diğer yandan, gelir eşitsizliği tüketim farklılıklarına ve temiz teknolojilere sınırlı erişime yol açarak karbon emisyonlarının artmasına ve çevresel bozulmaya neden olabilmektedir. Bu durum, sağlam çevre düzenlemeleri ve yönetişimin yanı sıra adil ekonomik politikaların benimsenmesinin zorunlu olduğu Sovyet sonrası ekonomiler için geçerli olmaktadır.

Makale detayları

Income Disparity, Institutional Effectiveness, and Environmental Decline in Post-Soviet Economies: Insights from VEC and VAR Causality Methods

Yazarlar:

Nermin Yaşar Başkaraağaç

Yayıncı:

Ahmet Arif EREN

Ana Başlıklar:

Uygulamalı Makro Ekonometri

Dergi:

Fiscaoeconomia Vol.9 Issue 1, pp.1-12

Belge Tipi:

Makale

Yayın Tarihi:

2/2025

Belge Dili:

İngilizce

Document ID (Org No.):

2001341626

pISSN:

2564-7504

Income disparity

institutional effectiveness

CO2 emission

ARDL

VEC

VAR

Toda-Yamamoto approachGelir eşitsizliği

kurumsal etkinlik

CO2 emisyonu

ARDL

VEC

VAR

Toda-Yamamoto yaklaşımı

Sayı

Makale detayları

Yazarlar: Nermin Yaşar Başkaraağaç

Yayıncı: Ahmet Arif EREN

Ana Başlıklar: Uygulamalı Makro Ekonometri

Dergi: Fiscaoeconomia Vol.9 Issue 1, pp.1-12

Belge Tipi: Makale

Yayın Tarihi: 2/2025

Belge Dili: İngilizce

Document ID (Org No.): 2001341626

pISSN: 2564-7504

Sayı

Yazarlar:

Nermin Yaşar Başkaraağaç

Yayıncı:

Ahmet Arif EREN

Ana Başlıklar:

Uygulamalı Makro Ekonometri

Dergi:

Fiscaoeconomia Vol.9 Issue 1, pp.1-12

Belge Tipi:

Makale

Yayın Tarihi:

2/2025

Belge Dili:

İngilizce

Document ID (Org No.):

2001341626

pISSN:

2564-7504