The impact of factors on environmental pollution in asean countries: The role of institutional quality

The impact of institutional quality on environmental pollution in ASEAN countries is analyzed in this study. The researcher collected 250 observations from the World Bank dataset using data from 1996 to 2020. The author applied principal component analysis (PCA) and autoregressive distributed lag (ARDL) techniques to estimate panel data. The evidence of this study suggests that institutional quality has a negative impact on environmental pollution in the short run and a positive impact in the long run. Other macro factors, such as economic growth, trade openness, financial development, FDI, and energy consumption, have varying degrees of impact on environmental pollution. To the best of the authors' knowledge, there is currently no research examining the impact of institutional quality on environmental pollution in ASEAN countries, with the institutional quality variable created from six indicators based on the WGI database by using the PCA technique.