05 Impact of Productivity and Institutional Quality on Environmental Quality (Evidences from Developing Economies)

Examination of the environmental pollution and the factors influencing it by considering the specific characteristics of each country for acheivment to growth and sustainable development and reduse of emission is very important. this study, investigate the effect of productivity and institutional quality on the quality of the environment by using the panel data analysis for 16 developing countries including IRAN during the period of 1998-2016. The results of the estimations indicate that there is a third degree relationship between per capita income and environmental degradation. The results also reveal that in developing countries, the effect of productivity growth and institutional quality (political rights and civil liberties) on environmental quality are negative, as with productivity increase due to rebound effect of it and also with increase of political rights and civil liberties as a result of ignoring of environment by stakeholders and exploitation of resources in these countries, pollutant emissions will increase.