Abstract
This research paper highlights the incidence of institutional factors on the efficiency of GDP and CO2 emission. We use a stochastic analysis frontier model of a sample of ten countries, during the period 1995-2013. Besides, we explain the CO2 emission and GDP inefficiency by the institutional factors. The contribution of this research appears in the examination of the interrelations within institutional factors, CO2 emissions' efficiency and GDP efficiency. Our results show that institution's quality in Maghreb's countries is deficient, especially after the uprising which leads to a high level of inflation, unemployment and unfavourable environment for investments. However, in the Gulf countries, a good institutional quality such as corruption reduction, regulatory quality, rule of law and so on would participate to improve economic and social outcomes and to create favourable institutional climate that helps pursuing sustainable development. Regarding CO2 emissions, the orientation towards more energy efficiency could improve their performance.
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