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Governance, Vulnerability to Climate Change, and Green Growth: International Evidence

Examining the role of governance and vulnerability to climate change in green growth using a global panel data set, findings suggest promoting good governance and reducing climate change vulnerability can contribute to a cleaner environment.

We find that governance has a positive effect on environmental performance and vulnerability to climate change has a negative effect. Promoting good governance and reducing climate change vulnerability can thus contribute to a cleaner environment. We find qualitatively similar results for the subsample of high-income countries, but governance has an insignificant effect for the subsamples of upper-middle-income, lower-middle-income, and low-income countries. High-income countries have strong environmental policies to protect the environment whereas other countries need to strengthen their relatively weak environmental policies.