THE ROLE OF INSTITUTIONAL QUALITY IN THE EFFECT OF ENVIRONMENTAL DEGRADATION ON SUSTAINABLE DEVELOPMENT GOALS: EVIDENCE FROM BAYESIAN INFERENCE
DOI:
https://doi.org/10.18623/rvd.v22.n6.4004Abstract
The transition of the economic structure from “brown” to “green” has become a strategic objective for every country. However, environmental degradation remains a critical issue that needs to be addressed in order to achieve sustainable development, and at the same time, examining the role of institutional quality is essential. To address these issues, this study employs a Bayesian regression model based on a dataset of 73 countries over the period 2002–2020. The results show that EDI has a negative effect on sustainable development, implying that a reduction in EDI leads to an increase in SD. This finding highlights the important role of EDI in enhancing sustainable development. Regarding institutional quality, IQ has a positive impact on sustainable development and plays a crucial role in achieving sustainability goals. In addition, when evaluating the role of IQ in the relationship between EDI and SD, the results indicate that IQ amplifies the impact of environmental degradation on the sustainability pathway. Based on these findings, several policy implications are proposed, such as improving environmental quality and strengthening institutional quality in order to move toward sustainable development goals.
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