Does Political Stability Hinder Pollution? Evidence From Developing States

We examine the nexus between CO2 emissions and political stability using a sample of low- and lower-middle income countries over 1990-2015. Panel vector error correction model (PVECM) estimations unveil a non-linear, bell-shaped pattern between the two indicators. This suggests that political stability starts to reduce CO2 pollution only after the optimum level is reached. Moreover, we find important heterogeneities concerning countries' level of development and when considering political stability subcomponents. Overall, the findings suggest that both the formal and informal side of political stability plays a vital role in mitigating CO2 pollution in developing countries, and may provide meaningful insights for policymakers.