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This research uses the panel cointegration and panel-based error correction models to investigate the causality among environmental quality, government efficiency, and industry growth for the period 2002–2020 for 126 countries. The results indicate that a long-term equilibrium cointegrated relationship exists among the variables. Government efficiency has a positive effect on environmental quality, while industry growth only can have a positive effect on EHI. Moreover, the negative influence of industry growth is quite serious in non-OECD countries. Lastly, increases in government efficiency and industry growth in the long run promote environment quality, but in the short run they are not significant.

The Effects of Industry Growth and Government Efficiency on Environmental Quality: The Global Perspective