Shahriyar Mukhtarov

Faculty of Business and International Relations, Vistula University, Warsaw, Poland; 

Department of Economics and Management, Khazar University,

Baku, Azerbaijan; 

BEU-Scientific Research Center, Baku Engineering 

University, Baku, Azerbaijan

E-mail: s.mukhtarov@vistula.edu.pl

ORCID 0000-0001-6248-6120

The role of institutional quality in reducing environmental degradation in Canada

Javid Aliyev

Department of College of Islamic Studies, Islamic Finance and Economics, Hamad Bin Khalifa University, Qatar 

E-mail: jaal38861@hbku.edu.qa

ORCID 0000-0001-6415-0540

Farid Jabiyev

Department of Business Administration, Baku Higher Oil School (BHOS), Baku, Azerbaijan;

Department of Economics, Baku Engineering University, Baku, Azerbaijan;

Karabakh Economic Research Center, Azerbaijan State University of Economics (UNEC), Baku, Azerbaijan

E-mail: fcebiyev@beu.edu.az

ORCID 0000-0002-6675-0264

Davut Han Aslan

Faculty of Business and International Relations, Vistula University, Warsaw, Poland

E-mail: d.aslan@vistula.edu.pl

ORCID 0000-0002-9714-9463

Abstract. This paper uses the Fully Modified Ordinary Least Squares (FMOLS) technique to explore the influence of institutional quality, income consumption of renewable energy, trade openness, and total factor productivity on consumption-based CO2 emissions in Canada from 1996 to 2021. Estimation findings showed that institutional quality, renewable energy use, and total factor productivity exert a statistically significant and negative influence on CO2 emissions. Moreover, our findings indicated that there is a statistically significant and positive impact of income on CO2 emissions, while trade openness exhibits an insignificant impact on CO2 emissions. The study discusses alternative policies, emphasizing the role of institutional quality in reducing CO2 emissions.

Received: March, 2023

1st Revision: December, 2023

Accepted: March, 2024

DOI: 10.14254/2071-789X.2024/17-1/6

JEL Classification: O13, Q01, Q42, Q50

Keywords: Canada, consumption-based CO2, institutional quality, corruption, FMOLS, Cointegration