The contemporary era confronts formidable obstacles, including environmental deterioration and energy consumption, which jeopardize the rapid advancement of the worldwide financial system. The hazards mentioned above encompass depletion of natural resources, eutrophication, and climatic catastrophes. Within this framework, the discourse surrounding strategic planning centers on institutional positioning and economic prospects, with the incorporation of alternative energy resources serving as a significant metric of economic advancement, as underscored by the COP26 objectives. This research examines the correlation between the quality of institutions and environmental quality, as measured by carbon emissions. A fixed effect regression methodology was utilized to estimate the relationship, utilizing panel data from the South Asian Association for Regional Cooperation economies covering the period from 1990 to 2021. The results show that if there is a 1% increase in the government regulatory quality and renewable energy, carbon emissions decrease by −0.102% and −1.125%, respectively, underscores institutions’ significance in advancing sustainable growth policies within the South Asian Association for Regional Cooperation region. Moreover, if there is a 1% increase in political instability, inbound foreign direct investment, and economic growth, carbon emissions increase by 0.199%, 0.042%, and 0.129%, respectively, suggesting the presence of rent-seeking conduct and pollution haven hypothesis, adversely affecting the ecological system. The study offers significant perspectives for policymakers who aim to foster sustainable regional development.

中文翻译：

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监管事务、政治稳定和可再生能源需求是否会改善环境质量？南亚区域合作联盟地区的看法

当今时代面临着巨大的障碍，包括环境恶化和能源消耗，这危及了全球金融体系的快速发展。上述危害包括自然资源枯竭、富营养化和气候灾难。在此框架内，围绕战略规划的讨论以制度定位和经济前景为中心，将替代能源纳入经济发展的重要指标，正如 COP26 目标所强调的那样。本研究考察了机构质量与环境质量（以碳排放量衡量）之间的相关性。采用固定效应回归方法来估计这种关系，利用南亚区域合作联盟经济体 1990 年至 2021 年期间的面板数据。结果表明，如果政府监管质量提高 1%，可再生能源发电能源方面，碳排放量分别下降了-0.102%和-1.125%，凸显了南亚区域合作联盟地区各机构在推进可持续增长政策方面的重要性。此外，如果政治不稳定、入境外国直接投资和经济增长每增加1%，碳排放量将分别增加0.199%、0.042%和0.129%，这表明寻租行为和污染避难所假说的存在，对生态系统产生不利影响。该研究为旨在促进可持续区域发展的政策制定者提供了重要的视角。