Does Higher Institutional Quality Result in Environmental Sustainability? A Comparative Study of India and China

Abstract

There is a lack of comprehensive research comparing India and China in terms of institutional quality and environmental degradation. This special issue aims to make threefold distinct contributions. By comparing India and China, we can learn from each other's experiences and gain insight into the shared difficulties both nations face when trying to achieve environmental sustainability in the face of high-quality institutional frameworks. The impact of corruption, economic development, ecological risk, and renewable energy sources on carbon dioxide emissions in China and India is investigated in this study. For this reason, we also employ the ARDL model and pairwise Granger causality to prove that something caused another. Applying the ARDL long-run bound test, the empirical results reveal a long-run connection between variables in both China and India. In the case of China and India, the estimated results also reveal a negative correlation between carbon emissions and the usage of renewable energy sources, but a positive correlation between carbon emissions and economic growth, corruption, and environmental risk. Improving institutional quality is the goal, and the present theoretical and applied discourse on comparative environmental sustainability is a good place to start. As a result, policymakers in China and India should oppose unfair practices that undermine competition laws and policies by instituting stringent anti-corruption measures and environmental rules. Energy efficiency measures that reduce carbon emissions without slowing economic growth should also be the government's primary focus.