The Political Economy of CO2 Emissions: Investigating the Role of Associational and Organizational Freedoms in Environmental Quality

OpenAlex · English

The historical peak in CO2 emissions has intensified global environmental concerns, urging the identification of key determinants. While economic drivers are well-documented, political dimensions—especially democracy and institutional quality—are increasingly emphasized. However, the role of freedom of association and organization (AOF), a core democratic element, remains largely unexamined in this context. This study fills this gap by analyzing the impact of AOF on CO2 emissions in the top 20 emitter countries from 2006 to 2022. The selection of these countries enables a focused assessment of the world’s primary polluters, ensuring high policy relevance. Using second-generation panel estimators, the Augmented Mean Group and the Common Correlated Effects Mean Group estimators, the analysis accounts for heterogeneity and cross-sectional dependence. Robustness is tested using the CS-ARDL method, confirming the stability of results. Empirical findings show that higher levels of AOF significantly reduce CO2 emissions. Income and energy consumption increase emissions, while the effect of trade openness is statistically insignificant. These results suggest that strengthening associational freedoms can offer a dual benefit: advancing democratic norms and achieving environmental goals.