Institutional quality, oil price, and environmental degradation in MENA countries moderated by economic complexity and shadow economy.

This paper aims to analyze the link between environmental degradation and institutional quality and the price of oil moderated by economic complexity and the underground economy. We use quantile regressions with annual panel data for 15 countries in the Middle East and North Africa during 1995-2021. The findings indicate that institutional quality, economic complexity, and output positively and heterogeneously impact environmental degradation. However, the square of production has a negative impact, confirming an inverted U relationship between production and environmental degradation. Likewise, we find that the price of oil and the underground economy have a negative and heterogeneous impact on environmental degradation. Based on our results, a potential recommendation for policymakers is that the institutional framework of Middle Eastern and North African countries should be accompanied by a more significant concern for the environment instead of prioritizing extractive growth that is detrimental to the environment's environmental sustainability. Likewise, economic diversification will mitigate environmental degradation and improve formal employment. Our findings are relevant to policymakers and researchers interested in promoting ecological sustainability.

Non-linear effect of manufacturing on an environmental pollution index in Latin America.

Manufacturing is one of the primary sources of environmental pollution due to the emission of polluting gases and waste generation. This research aims to examine the manufacturing industry's effect on an environmental pollution index in nineteen Latin American countries using non-linear methods. The youth population, globalization, property rights, civil liberties, the unemployment gap, and government stability moderate the relationship between the two variables. The research has a temporal coverage between 1990 and 2017 and uses threshold regressions to verify the hypotheses. In order to obtain more specific inferences, we group countries according to the trade block and geographic region to which they belong. Our findings indicate that manufacturing has limited explanatory power for environmental pollution. This finding is supported by the fact that the manufacturing industry in the region is scarce. In addition, we find a threshold effect on the youth population, globalization, property rights, civil liberties, and government stability. Consequently, our results highlight the importance of institutional factors in designing and applying environmental mitigation mechanisms in developing regions.

Biocapacity convergence clubs in Latin America: an analysis of their determining factors using quantile regressions.

Latin America experiences an increasing urban primacy index and a rapid expansion of the financial system, putting direct pressure on the demand for resources to satisfy the consumption of large cities. We investigate the convergence of per capita biocapacity in 16 Latin America countries and evaluate the factors that influence its evolution over time. Specifically, we analyze the impact of the urban primacy index, economic progress, and the financial globalization index on the convergence of per capita biocapacity. We use the methodological framework developed by Phillips and Sul Econometrica 75:1771-1855, (2007) to analyze the convergence and the formation of convergence clubs of biocapacity during 1970-2017. The findings indicate that the countries of the region do not share a common trend of biocapacity, although they are grouped into five converging clubs. Biocapacity transition analysis reveals that countries have heterogeneous transition pathways between them. Using marginal effects, we find that the urban primacy index and economic progress reduce the biocapacity. The effect of the financial globalization index on biocapacity is not conclusive. The quantile regressions reveal that quantiles' impact of the urban primacy index and financial globalization on per capita biocapacity is heterogeneous. However, the effect of economic progress on biocapacity that predominates among quantiles is positive. The adoption of common policies among the countries that form the converging clubs could improve the effectiveness of pro-environmental policies and promote the achievement of the Sustainable Development Goals related to environmental quality.