|
EconStor >
ifo Institut – Leibniz-Institut für Wirtschaftsforschung an der Universität München >
CESifo Working Papers, CESifo Group Munich >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/52501
|
| | |
| Title: | | Pollution, shadow economy and corruption: Theory and evidence  |
| Authors: | | Biswas, Amit K. Farzanegan, Mohammad Reza Thum, Marcel |
| Issue Date: | | 2011 |
| Series/Report no.: | | CESifo working paper: Resource and Environment Economics 3630 |
| Abstract: | | We study how the shadow economy affects pollution and how this effect depends on corruption levels in public administration. Production in the shadow economy allows firms to avoid environmental regulation policies; a large informal sector may be accompanied by higher pollution levels. Our theoretical model predicts that controlling the levels of corruption can limit the effect of the shadow economy on pollution. We use panel data covering the period from 1999-2005 from more than 100 countries to test this theoretical prediction. Our estimates confirm that the relationship between the shadow economy and the levels of pollution are dependent on the levels of corruption. Our results hold when we control for the effects of other determinants of pollution, time varying common shocks, country-fixed effects and various additional covariates. |
| Subjects: | | environmental pollution shadow economy corruption panel data |
| JEL: | | Q53 Q56 Q58 |
| Document Type: | | Working Paper |
| Appears in Collections: | | CESifo Working Papers, CESifo Group Munich
|
| Files in This Item:
| |
|
| No. of Downloads:
| |
| last Month |
last 3 Month |
total |
|
|
|
|
|
| |
| | |
Download bibliographical data as:
BibTeX
|
| |
Share on:http://hdl.handle.net/10419/52501
|
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.
|