The linkage between globalization, institutional quality, and environmental sustainability has emerged as a pivotal theme in contemporary ecological discourse. Greenhouse gas (GHG) emissions have grown since the initiation of the industrial age, which has had an upsurge in radiative force on the climate and a tendency to warm the surface and cause climatic changes (Abdi, 2023; Canadell et al., 2021) At the heart of this dialogue is the recognition of how social and political globalization, through the transnational flow of ideas, cultural values, and political ideologies, can reshape environmental governance across the globe (Dauvergne, 2013). While social globalization facilitates the diffusion of environmental consciousness and green technologies, political globalization often promises the proliferation of international treaties and collaborative governance frameworks (A Jahanger et al., 2023). The effectiveness of these processes is supported by the quality of institutional frameworks, which are crucial for converting international agreements into concrete environmental results (Bekun et al., 2021). Robust institutions are identified as a cornerstone for effective environmental policy-making and for the enforcement of measures aimed at reducing GHG emissions (Uzar, 2020; Warsame, Sheik-Ali, et al., 2022). Thus, it is remarkable to identify the interaction between globalization, institutional quality, and GHG emissions in developing countries to implement effective environmental policies that mitigate their ecological footprints.
Empirical studies suggest that globalization has a variety of effects on the environment, depending on the channel via which it enters. The globalization process has an impact on environmental quality as it alters variables including energy, employment, technology, foreign direct investment (FDI), and industrialization (Pata & Caglar, 2021). It is widely agreed that the process of globalization has effectively reduced the income gap existed between emerging and developed nations through investments in capital and technologies (Atif Jahanger et al., 2022b). However, this has come at the expense of environmental deterioration. The positive impacts of globalization are examined to its effect on ecological quality, specifically in terms of reducing environmental pollution (Atif Jahanger et al., 2022a). Many researchers claim that the process of globalization has a detrimental effect since it amplifies the total pollution level via the heightened breakdown resulting from increased CO2 emissions(Warsame et al., 2023; Chien et al., 202 ;Suki et al., 2020). CO2 emissions resulting from globalization are identified as a primary factor contributing to deforestation, natural resource depletion, climate change, and global warming (H. Khan et al., 2022a) During the process of globalization, the industrial sector engages in the production of goods to cater to international demand, resulting in heightened consumption of resources and the emission of pollutants into the atmosphere (Pata & Yilanci, 2020;Pata & Yilanci, 2020). The engagement in increased production and consumption activities has the potential to directly contribute to the escalation of environmental deterioration (Pata & Caglar, 2021) .
The significance of globalization lies in the facilitation of technological transfer and collaboration across nations in addressing the issue of climate change (Ansari et al., 2021). Since the use of non-renewable energy sources is closely linked to the pace of economic expansion, the increasing global demand for goods and services has necessitated a rise in energy consumption (H. Khan et al., 2022a; Abdi, 2023). Notably, environmental regulations in developing countries often attract pollution-intensive industries from advanced nations, leading to environmental deterioration in the receiving regions(Wenlong et al., 2023; Shahbaz et al., 2015) .This phenomenon contributes to emissions, where shifts in production locations due to varying environmental standards result in the redistribution of emissions from one country to another. On the contrary, globalization encourages knowledge transfer to developing nations and the adoption of cleaner production methods, which positively impacts the environment. International relationships between multinational corporations and countries have aided in the diffusion of technological advances into emerging economies, aiding in some manner in ecosystem preservation (Adebayo et al., 2022). The spread of expertise and eco-friendly technology not only enhances environmental quality but also improves labor efficiency and capital productivity, streamlining manufacturing and reducing emissions (Mansoor & Tahir, 2021; Wen et al., 2021).
Conversely, numerous studies have extensively investigated the impact of institutional strength as a determining factor in improving environmental quality. Environmental issues in developing nations often correlate with weak institutional frameworks, especially in the political realm, leading to ineffective enforcement of environmental laws (H. Khan et al., 2022b). The studies have thoroughly investigated the role of institutional factors such as governance effectiveness, democracy, legal systems, political stability, and regulatory quality in impacting environmental challenges, particularly in terms of emissions (Wenlong et al., 2023;Warsame, Sheik-ali, et al., 2022). It has been demonstrated that robust institutions can avert market inefficiencies, create impactful regulations, and formulate effective environmental strategies, all of which contribute positively to environmental health (Wenlong et al., 2023). On the flip side, subpar institutional quality often results in inefficient resource management and environmental deterioration (Atif Jahanger et al., 2022a). Overall, the effectiveness of institutions is crucial to environmental outcomes, highlighting the necessity for robust legislative and institutional mechanisms to reduce environmental harm and foster sustainable global practices (Azam et al., 2021). Several researchers have suggested that strong institutional structures can suppress environmental degradation (Cao et al., 2022; Sheraz et al., 2022). However, the evidence Teng et al., (2021)and Islam, (2021)reveals that institutional quality increases environmental deterioration. Regarding this, the literature on the institutional quality-environment nexus remains inconclusive, which necessitates further investigation, particularly in countries with deficient government institutions such as Somalia.
Research on industrialized nations has dominated global inquiries into elevated atmospheric carbon effects, but recent concerns have expanded the focus to include developing economies as well (Abdi, 2023). In Somalia,Warsame & Hassan Abdi, (2023) discovered that sustained environmental pollution and degradation negatively impact the agricultural sector, a significant contributor to the nation's export earnings. Amidst the continuing discourse on the effects of globalization and institutional quality on environmental degradation, the current study examines the connection between quality institutions, social and political globalization, urbanization and GHG emissions in Somalia by using time-series data from 1990–2018. To the best of the authors’ knowledge, there is no previous effort to analyze the connection between these variables within a single framework in the context of Somalia. Hence, this study contributes to the literature as follows. The few prior studies related to the subject in the context of Somalia have used the aggregated variable of globalizationWarsame et al., (2023b) which does not capture the actual effects of globalization on the environment since the various components of globalization affect environmental quality differently. Additionally, the study utilizes advanced estimation methods, including the autoregressive distributed lag (ARDL) model, fully modified ordinary least squares (FMOLS), and causality tests. These techniques are applied to derive more thorough policy suggestions based on the linkage between globalization, institutional quality, and GHG emissions in the context of Somalia.
The structure of this paper is outlined as follows. Section two represents a review of the literature. Section three delineates the econometric methods employed and the data sources utilized. The findings and discussions are presented in section four, while the concluding section offers a summary and outlines the pertinent policy implications.