Institutions and the effectiveness of expenditures on environmental protection : evidence from Middle Eastern countries

Middle Eastern countries are among the top air emitters in per capita terms worldwide. We examine the effect of government expenditures on environmental protection (GEEP) on air pollution in the Middle East and North Africa (MENA) countries. Moreover, we explore whether countries with stronger quality of governance can exploit GEEP to reduce air pollution more efficiently. Empirical analysis, using data from 1996 to 2015 for a set of the MENA countries, shows that GEEP alone does not play a significant role in contributing to better environmental quality. However, improvements in quality of governance are shaping the final environmental effects of GEEP in the MENA region. Our results can help policy makers in the region and international community in discovering strategies for reaching the agreed goals under the Paris Climate Deal (COP21), namely net zero emissions in the second half of the century.