Institutional Quality and Environmental Pollution : MENA Countries Versus the Rest of the World

Using data for over 100 nations over the years 2004-2007, this study examines the effect, of institutional quality on environmental pollution, focusing primarily on influences of corruption, and the shadow economy, and paying special attention to MENA countries. Controlling for a number of factors, results show that both more corrupt nations and nations with large shadow sectors have qualitatively and quantitatively similar effects in yielding fewer (recorded) emissions; however, MENA nations have higher pollution rates. Policy implications are noted