Discussion Paper

No. 2016-43 | November 02, 2016
Does Corruption Matter for the Environment? Panel Evidence from China


This paper examines the income-energy-SO2 emissions nexus by taking a corruption variable into account. To that end, the panel cointegration methods are applied to 29 Chinese provinces over 1999–2012. The authors´ empirical evidence shows that an increase in the number of anti-corruption cases tends to drive down SO2 emissions in China. It is also found that income growth appears to have a beneficial effect on decreasing SO2 emissions over the past two decades. Finally, energy consumption is found to increase SO2 emissions.

JEL Classification

C23 Q56

Cite As

Xianchun Liao, Eyup Dogan, and Jungho Baek (2016). Does Corruption Matter for the Environment? Panel Evidence from China. Economics Discussion Papers, No 2016-43, Kiel Institute for the World Economy. http://www.economics-ejournal.org/economics/discussionpapers/2016-43


Comments and Questions

mouna GAMMOUDI - Comments
November 03, 2016 - 21:34

I find the question the paper is trying to ask and its findings very interesting, however, I have some remarks as detailed below:

1-No explanations are given why the authors consider the specific 29 Chines provinces in their analysis. What provinces are included? What makes ...[more]

... them interesting? Why other provinces are not considered?

2-In the concluding Remarks authors write “we take into a corruption variable into account in a dynamic panel model when estimating the income-energy-SO2 emissions nexus”. Did you used a dynamic panel? I don’t understand this phrase.

3- - The paper does not provide enough details about empirical methodology, it is important to include a paragraph where you explain the empirical methodology

Jungho Baek - Responses
November 10, 2016 - 03:15

1. China has 23 provinces, 4 municipalities directly under the central government, 2 special administrative regions and 5 autonomous regions, totally 34. Because the data from Tibet autonomous region, Taiwan Province, Macao Special Administrative Region, Hong Kong Special Administrative Region cannot be obtained, the 4 regions are excluded. Although Chongqing ...[more]

... municipality was established in 1997, there is lack for some variables in some years for this city and its all data are incorporated in Sichuan Province. Thus, the number of remaining provinces are 29. This will be added in the revised manuscript as suggested.
2. The panel cointegration method would be more appropriate for the phrase. This will be taken care of in the revised manuscript. Thank you very much!
3. Thank you very much for your suggestions and comments. We will include a paragraph to explain the empirical methodology in the revised version of our paper.

WANG ZIFENG - good paper
November 08, 2016 - 10:44

This paper's topic is interesting and very important to China. I have no more questions on this paper.

Jungho Baek - Thank-You
November 10, 2016 - 03:16

Thank you for your positive comments.

Wei Geng - Great paper
November 09, 2016 - 02:37

This topic is interesting. It is meaningful and provides insights not only for China, but also for developing countries with similar circumstances. It is a great paper in terms of research questions, methodology, results and policy implications. I am OK with this paper.

Jungho Baek - Thank-You
November 10, 2016 - 03:17

We truly appreciate your positive comments.

Zanxin Wang - Interesting
November 10, 2016 - 08:32

This paper's topic is interesting. The methodology is widely used in economics. The results provide insights on China's sustainable development. Overall, the article being reviewed is straightforward and contributes to the knowledge in literature.

Anonymous - Thank-You
November 14, 2016 - 03:52

We appreciate your positive comments. Thank you very much!