This study examines the role of control of corruption, green energy, trade, innovation, natural resources, and information and communication technology (ICT) in carbon dioxide (CO2) emissions in developing economies from 2000 to 2018. We use Driscoll-Kraay panel-corrected estimators to identify the direct and indirect environmental impacts of corruption through interaction effects. We find that controlling corruption in developing countries has a negative impact on the environment or increases CO2 emissions. Similarly, the interaction effect between corruption control and natural resources increases CO2 emissions. Conversely, corruption control and green energy indirectly reduce environmental quality. We found evidence that green energy and innovation can help reduce carbon emissions. Furthermore, the interaction between corruption control, innovation, and ICT increases environmental quality in the long run. These results also support the Environmental Kuznets Curve hypothesis for the sample period. Bootstrap quantile regression was used as a robustness check. The results also show that the control of corruption, the depletion of natural resources and the use of non-renewable energy all contributed to the increase in CO2 emissions. Green energy, innovation, and ICT are the drivers of environmental sustainability growth in developing countries. The findings suggest that developing countries should increase their investment in green energy generation, and promote green innovation in high energy-intensive sectors, in order to achieve the Sustainable Development Goals (SDGs).
- Control of Corruption
- Green energy
- Information and communication technology