Exploring the role of economic and institutional indicators for carbon and GHG emissions: policy-based analysis for OECD countries

Most of the developed countries across the globe have targeted to attain sustainable economic growth. With this focus, the current study evaluated 29 OECD countries over the time period of 1990 to 2018 to analyze the influence of economic and environmental indicators, i.e., export diversification, institutional quality, macrocosmic variables on carbon dioxide, and greenhouse gas emissions. The current study used the quantile regression and generalized method of moments approach on the selected panel. Our comprehensive econometric approach allows us to reveal that export diversification negatively affects carbon emissions but promotes greenhouse gas emissions. Similarly, institutional quality, economic growth, financial development, and economic growth helps to reduce carbon emissions but increase greenhouse emissions. In comparison, trade openness exhibits a positive influence on carbon emissions but a negative on greenhouse gas emissions. Besides, urbanization is found one of the major reasons for environmental degradation. In light of empirical fact findings, this study commends some innovative policy insights for scholars, governors, and policymakers.