12fab62417720fa6884-4b78 20210228010156916 ijaas ch.ta.yeh@gmail.com WEB-FORM International Journal of ADVANCED AND APPLIED SCIENCES Int. j. adv. appl. sci. 2313626X 23133724 4 2021 4 2021 8 4 Department of Business Administration, Sukkur IBA University, Sukkur, Pakistan Sheraz et al. This paper examines the effect of democratic countries which encourage economic freedom on the environment, measured by Carbon Dioxide (〖CO〗_2) emission. For the empirical analysis, an annual panel data sample consisting of 179 countries from 1990 to 2018 is collected. Applying the Ordinary Least Squares and Two-Step Generalized Method of Moments estimation techniques, we find that the environmental quality is enhanced with a higher degree of democracy and economic freedom. The results firmly hold for high and middle-income countries when the sample is decomposed across income levels. 4 2021 4 2021 130 137 10.21833/ijaas-crossmark www.science-gate.com false IASE www.science-gate.com 10.21833/ijaas.2021.04.015 http://www.science-gate.com/IJAAS/2021/V8I4/1021833ijaas202104015.html http://science-gate.com/IJAAS/Articles/2021/2021-8-4/1021833ijaas202104015.pdf