Navigating the Nexus of Democracy, Corruption, and Military Spending on Environmental Decay

This study aims to investigate the interplay between democracy, defence expenditure, corruption, and environmental decay across South Asian Association for Regional Cooperation countries, spanning a period of twenty years of panel data from 2000 to 2019. By exploring these interconnected determinants, our study aims to shed some light on how governance and military expenditure influence environmental quality concerning carbon footprints. Understanding these dynamics can reveal the mechanisms through which corruption and military expenditure exacerbate environmental degradation. We analyse the determinants of environmental degradation utilizing the Dynamic Ordinary Least Squares (DOLS) approach. Our analysis will provide insights into the ways in which corruption may undermine democratic institutions and contribute to environmental harm. Additionally, this paper also seeks to highlight the importance of fostering transparent governance and sustainable policies to mitigate ecological degradation. Regression results indicate positive association between military spending and environmental degradation. However, we find a contradict result between democracy and carbon emissions. Typically, freedoms and elevated consumption patterns in democratic economies frequently result in higher energy demands, leading to larger environmental footprints. Political corruption index positively and significantly influences carbon emissions, driving greater industrial activity and resource exploitation, escalating CO2 emissions and degrades the environment. JEL Codes: C23; E66; H50; O50