Study argues that corruption can enhance environmental efficiency and boost economy in developing nations

Study argues that corruption can enhance environmental efficiency and boost economy in developing nations

According to a recent study ⁣published in the Journal of Cleaner Production, corruption ⁤in developing countries can actually lead to improved environmental⁣ efficiency and a ‍better⁢ economy.

The study ⁣introduces a ​unique Bayesian data ⁣envelopment analysis ‍(DEA) ⁤approach ‍to examine the environmental ​efficiency across different countries. ⁤While this finding aligns ⁢with some existing⁢ literature ⁤on environmental efficiency, it may come as a surprise to green activists and‍ environment-friendly‍ media, as⁤ the researchers specifically focus on the relationship between pollution ⁣levels and corruption in developing countries.

Dr. Panagiotis Zervopoulos, the corresponding author of‍ the study from the University ⁢of Sharjah in the United Arab Emirates, argues that “corruption could facilitate economic activity and improve environmental efficiency for ‍countries with weak institutions.”

“This‌ study identified an inverse relationship between the control of corruption ⁤and environmental⁣ efficiency in developing countries, in line with the economic growth and‍ existing literature ‍on environmental efficiency,” ⁤adds Dr. Zervopoulos.

The inverse correlation is considered “statistically significant” in developing countries, while it is not statistically significant for⁢ developed countries. Additionally, the environmental efficiency of developed countries is‍ not influenced by formal institutional factors but rather by environmental policies, according ⁢to⁢ Dr. Zervopoulos.

2023-11-25 11:41:02
Link from phys.org rnrn

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