Good governance role and size of government on environmental performance in selected countries

Document Type : Research Paper


Matherials & Methods
The main concern of developing countries is to achieve development. What is the new harvest of the development Concepts such as security, participation in social and political life, justice and the environment? The concept of development was beyond the accumulation of wealth and GDP growth and Quality of the environment that could indicate improved living conditions of the population should be considered as one of the most important pillars of environmental justice and sustainable development. Environment is enormous and complex set of different factors that affect the performance and human activities and are affected as well. so the socio-economic proper functioning of person’s dependent on the proper functioning of environment.
Several factors can affect the quality of the environment. Including economic variables (by degree of industrialization, trade and technological inequality), political variables (through democracy and dictatorship), social factors (the degree of urbanization and literacy rates) and government (by size and quality State) noted.
with a broader definition of environmental quality as environmental performance (EPI) (which represents environmental health, air quality, water quality, quality of productive natural resources, biodiversity and habitat, and sustainable energy), the role of individuals, governments and social relations between them, is vital in determining environmental performance.
The occurrence of market failures, shortcomings in safeguarding individual rights and shortcomings in the international balance, are based government intervention in the economy. in other words, it may market performance with regard to microeconomics approach, include allocative efficiency, however, in terms of macroeconomic views or development, represents a market failure. one example of market failure in the allocation of resources, is public of environmental goods. despite the more environmental resources have significant value, generally not considered precious to use them and if the price to be considered, these prices is not reflecting the price and the real cost of environmental resources.
governments on one hand, by mechanisms such as the valuation of resources, internalize environmental costs, zero social costs of production and consumption and the use of legal instruments and monitoring can reduce pollution and destruction and stabilize economy by reducing pressure on resources. On the other hand, the more government Presence, can Associated with problems such as weak institutions, Governments inefficiency, lower quality rules, weaken regulatory agencies, administrative extensive bureaucracy, lack of accountability, corruption, rent-seeking, weaken public participation, undermine public scrutiny and participation and so on. therefore, should pay more attention to the effect of government size and good governance and their mutual relations on the quality of the environment.
so based on the above discussion, current study had been discussed the role of government in society (including for example control of corruption, accountability, public participation, rule of law and regulatory quality) and socio-economic performance of governments (such as the size of government in the economy) in performance environmental.

Discussion of Results
In this study for examine the effect of government size and good governance as well as the theory of Kvzntsh, the following general model was used:
LEPIij=C+β1LEPI(1)ij+β2Linstij+β3Lsizeij+β4LGDPCij+β5LGDPC^2ij+β6Lpopdenij+β7Lopenij+ β8DUMij+εij
Where; LEPI represents the logarithm of environmental performance indicators, C: intercept, LEPI (-1): logarithm of the first continuous environmental performance index, Linst: log governance index, Lsize: logarithm of government consumption expenditure (% of of GDP) as an indicator of the size of government, LGDPC: log of per capita GDP (in constant price $ 2005 America), LGDPC2: logarithm of the square of per capita GDP (in constant price $ 2005 America), Lpopden: log the population density index, Lopen: logarithm of openness index, DUM: dummy variable to differentiate and compare Developing and developed and ε is a disturbing regression model.
Good Governance Index (inst) consists of the Sub-indexes which in separate models will be examined in this research. The sub- indexes include: voice: voice and find best responds index, Gove: Government Effectiveness Index, Regq: quality indicators laws and regulations, rule: the rule of law index and control: Corruption Perception Index.

In this paper, six indicators of good governance in separate models were estimated on Environmental Quality. The results show that all these indices significantly positive impact on the quality of the environment.
So, improving good governance means accountability, public participation, rule of law, regulatory quality and control of corruption, can be achieved better in the shade of a small Governments, Because the larger government Will be accompanied with bulkier and inefficient regulations and rules. When a private entity to harm the environment, treat and control it much easier to monitor state institutions and the power. Basically on the other hand, often the types of corruption, finds relevant in Government sphere. Finally, larger government will be accompanied with participation of fewer people, and so less accountability. Regarding trade openness index, it can have said First, business development can occur alongside smaller government and secondly, businesses make less damage to the environment.
Also, the results show that the size of government, population density and per capita GDP had a significant and negative impact on the EPI and the effect of economic openness on the EPI, has been positive. The results of this study also demonstrated Kuznets curve theory. This means that, in the early stages of economic growth that reduces environmental quality; but continue on the path of economic development, by providing resources for the community to improve environmental performance.
The negative effect of government size, is another channel to show the relationship between the inefficiency of government in the economy and the environment. this result is consistent with the effects of good governance and trade openness.


Main Subjects