6533b852fe1ef96bd12ab994
RESEARCH PRODUCT
Environmental expenditure interactions among OECD countries, 1995-2017
Youba NdiayeJulie Le Gallosubject
Economics and EconometricsStrategic interactionPopulationControl variableSample (statistics)0502 economics and businessStrategic interactionEconomics050207 economicsSpatial dependenceeducationSpatial econometricsJEL: H - Public EconomicsJEL: C - Mathematical and Quantitative Methodseducation.field_of_study050208 finance05 social sciences1. No povertyOecd countries[SHS.ECO]Humanities and Social Sciences/Economics and FinanceHigh unemploymentEnvironmental expenditureJEL: Q - Agricultural and Natural Resource Economics • Environmental and Ecological Economics8. Economic growthDemographic economicsSpatial econometricsCommon factorsdescription
International audience; How do countries respond to other countries when setting the level of their environmental expenditures? Using data from 1995-2017 on a sample of 28 OECD countries, we examine the nature and extent of strategic interactions in environmental expenditures among OECD countries using a spatial Durbin model including economic and political control variables and both economic and spatial weight matrices reflecting several interaction mechanisms. The results show the existence of significant positive spatial dependence in environmental spending suggesting that OECD countries consider their neighbors' behavior when making policy choices related to environmental expenditures. We also find that the most populous countries or those with high unemployment tend to spend less for environment while countries with a large urban population set higher levels of environmental expenditures. The results are robust to the inclusion of strong cross-sectional dependence under the form of common factors.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 2021-01-01 |