The impact of informality and institutional quality on environmental footprint: The case of emerging economies in a comparative approach

Corruption in Turkey and earthquakes: Policies for tackling corruption in the construction sector

“…The role of governance is also very important, as is the supervision of its functions by an independent external team. It is important to ensure the institutional quality of government and that fraud and corruption are avoided (Shahbaz et al, 2023).…”

Informality and energy efficiency in Africa: Evidence from symmetric and asymmetric (nonlinear) panel ARDL cointegration approaches

“…In support of this view, Canh et al (2021) maintain that the shadow economy catalyses tax evasion and therefore gives room for the avoidance of initiatives that are implemented by the government to promote green energy in economic activities. In the same vein, Shahbaz et al (2023) argue that informality may have a crowding out effect on the commitment of governments to the green transition as well as to a resilient, and inclusive development framework. They further argue that rising levels of informal economies might erode the financial and decision-making capacity of governments in supporting sustainable economic growth.…”

“…Focusing on a sample of 15 emerging market economies and using heterogenous econometric techniques, the study finds that in the long run, informality lowers carbon emissions and ecological footprints while increasing emissions of nitrous oxide. Then Shahbaz et al (2023) in a study comparing evidence between European and Asian countries, find that informality increases environmental footprint in the former and lowers it in the latter.…”

“…A plethora of studies have explored the effects of informality on energy consumption and environmental sustainability with mixed results. Shahbaz et al (2023), for example, compare evidence between Europe and Asia and find that whereas informality increases ecological footprints in European countries, the opposite effect is the case for Asian countries. The study by Pang et al (2021), which is motivated by the vicious cycle in the relationship, finds for the case of China that informality increases pollution.…”

“…First, the prevalence of informal economies is worrisome from a governance perspective. The lack of regulatory oversight and technological advancement in informal economies could engender sub-optimal practices in energy use (Shahbaz et al, 2023). An understanding of the dynamics of informality and its impact on energy efficiency is vital for crafting tailor-made policies and interventions, and this is especially important at a time when the challenges and opportunities of informality are taking centre stage in policy dialogues.…”