Evidence on the impact of regulation over environmental degradation in Brazil
DOI:
https://doi.org/10.33240/rba.v9i1.49657Keywords:
Environment, Kuznets Curve, Regulation, DegradationAbstract
This paper analyzes the impact of environmental regulation on environmental degradation in Brazil. Considering the hypothesis of the Environmental Kuznets Curve, we analyze the impact of formal regulation, which consists of social institutions that regulate environmental quality through monitoring and enforcement, and informal regulation (NGOs) on the level of environmental degradation of the Brazilian states. In empirical analysis, we use the method of ordinary least squares (OLS) and the method of instrumental variables (IV) to estimate the impact of regulation on environmental degradation in Brazil, at the state level, for the year 2002. The empirical results show that both formal regulation and informal regulation contribute to refrain environmental degradation.
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