Moderating role of private energy investment on the relationship between institutional quality and climate change mitigation

Abstract

There has been growing threat to our environment due to climate change that manifests in climate variation and many unplanned and uncontrollable deserters. Policies are continuously being put in place to counter the menace without due consideration of the importance of governance indicator in ensuring reduction to the threat. This study looks into the effectiveness the governance institutional pillars in reducing the climate change through reduction in greenhouse gas emission. The study further investigates the moderating role of private sector in reducing carbon emission. To achieve this, this study obtained secondary data and analyses it using both descriptive statistics and multivariate regression. The study found that the relationship between institutional qualities (rule-based governance, legal and social protection rating) and the in the greenhouse gas emissions in sub-Sahara Africa is positive while environmental protection has negative effect on carbon emission. furthermore, the findings revealed a moderating role of private sector investment on the relationship between institutional qualities and carbon emission. The study concludes that strengthening the institutional framework and encouraging private sector participation will work toward mitigating the climate challenges globally. Important among these institutions are the country’s adherence to good governance through effective rule-based system, efficient legal system and effectiveness of the law enforcement.