Coal combustion emission and corruption in ASEAN: Does government integrity plays moderation role?

Abstract

Coal energy is a cheap and abundant source of electricity in ASEAN. Despite this, the reality of CO2 emissions from coal gets a red report card on the issue of climate change. In terms of the institutional economy, corruption is the main enemy in the issue of environmental pollution; the cleaner government agencies, the lower the environmental pollution. In particular, the research aims to find out the moderating effect of government integrity concerning corruption and CO2 emissions from coal in ASEAN. But to help construct the analysis, the paper also previously looked into the relationship between corruption and CO2 emissions from coal and found out whether economic development played a mediating effect in that relationship. Using ECM panel analysis with a sample of 9 ASEAN member states, the paper found that: (1) In the long and short term, the lower level of corruption will reduce CO2 emissions from coal. (2) FDI plays a mediating effect between corruption and CO2 emissions from coal. The scheme is that the lower the level of corruption, the FDI will decrease and reduce CO2 emissions. (3) Government integrity strengthens the relationship between corruption and CO2 emissions from coal, meaning that the more honest and non-corrupt the government will have an effect that can strengthen the relationship between corruption and CO2 emissions from coal. This study recommends that the government in ASEAN member states should be keeping public trust because it will decrease the level of corruption and can save climate change in the future.