Corruption is as old as the society itself. In a way, you could say it is inevitable in all societies. The World Bank has put the annual value of corruption to a staggering USD$ 1.5 trillion, around 2 percent of the global GDP. In addition to misuse of public funds dedicated to infrastructure projects, corrupt activity has been linked to wasteful use of natural resources, higher CO2 emissions and improper land use. In the current era of where nations are trying to combat climate change, the intelligent, efficient utilisation of financial resources assumes more importance. With a move towards a low carbon economy and diversification of energy source, if not nipped in the bud, corruption can negatively contribute to greenhouse emissions and deforestation. This is a subject which has not always been given prominence over the years.
The environmental perspective of corruption
Academic evidence establishing a nexus between corruption and CO2 emissions, environmental degradation and improper land use has only begun to emerge. This link between corruption and lower environmental quality is more pronounced in developing countries and some evidence has even indicated that corruption could be the main driver of environmental problems being experienced is some developing societies. The impacts of corruption on the environment are twofold and multifaceted. Research indicates that society has both direct and indirect effects on the environment and the economy. Overall, corruption has a net negative effect on GDP growth. In the same breath, high level corruption has an impact on energy use due to the decrease in stringent measures on energy use. This in turn leads to an increase in CO2 emission through increased energy production. In addition, there is some evidence that bribes to people in positions of authority, have in the past, resulted in economically and environmentally costly projects.
Corruption and CO2 emissions
Research has also indicated that there is a relationship between corruption and the level of CO2 emissions. While this relationship exists in both developed and developing countries, it appears stronger in developing countries. What this means is that the more corruption there is in a country, the less likely that environmental policies will be adhered to and implemented. As previously touched on, though corruption has modest increases in the GDP, through increases in energy consumption and public budgets, the negative impacts are higher. These come through as lower quality of life, lower growth, higher costs and lower efficiency. Estimates made show that a percent increase in corruption can lower growth rate of businesses by 3 percent.
With the world aiming to transition to low carbon economy, the negative impact of corruption can hinder these noble efforts. Deforestation and warming climate are therefore creating a self-feeding negative loop where deforestation causes the climate to warm further and the warming climate potentially destroys more and more forest and biodiversity. Some projections even go as far as to imply that the Amazon is in serious danger of drying out during the 21st century. Corruption is contributing to this negative feedback loop in two ways. Firstly, by increasing energy consumption and therefore GHG emissions. Secondly, research confirms the link between corruption and decrease in ecological quality and wasteful use of natural resources such as forests.
Corruption and deforestation
Deforestation is creating a self-negative loop where deforestation is causing the warming of the climate which results in more and more devastation of biodiversity and forests. Predictions made in the Amazon for example have asserted that it could dry out in the 21st century. Corruption contributes to this negative loop in two important ways. In the first instance, corruption leads to increased energy consumption and therefore GHG emissions. Scientific research has confirmed that the nexus between corruption and a decrease in ecological quality, including wasteful use of natural resources like forests.
Against this backdrop fighting corruption is one way towards environmental protection. Robust measures to fighting corruption have to streamline environmental issues in their approaches to give the environment a chance. Good governance is one way of ensuring that countries can offset environmental degradation and attain sustainable development. More robust approaches from a governance point of view have to be taken by government and all relevant stakeholders to ensure that corruption is reduced and its impact on the environment is minimised.
