Does corruption influence climate change in developing countries? Effects and transmission channels

Climate change is one of the most pressing issues of our time. While its effects are affecting our ecosystems, societies and economies, understanding the mechanisms by which certain institutional forces, such as corruption, exacerbate this crisis remains a key and under-explored issue. This study sheds new light on the issue by analysing the transmission channels through which corruption affects climate change in developing countries between 2000 and 2022. It highlights the central role of the participatory democracy index and energy poverty, in particular access to clean fuels and technologies. After several empirical approaches, the results of the structural equation mediation (SEM) suggest that corruption positively affects climate change through an indirect channel via these two dimensions. These results underline the urgency of a solid institutional framework and investment in clean energy to counter this dynamic in developing countries, providing a basis for better targeted climate policies.