We offer a theoretical and empirical analysis that shows how corruption can be a ‘green grease’ that facilitates both environmental crimes and money laundering. Corruption can be an accelerator that amplifies the multiplier effect on illegal revenues. We model these relationships using a logistic function, which we calibrate to estimate overall environmental crime revenues using Italian regional data from 1995 to 2020.
Green grease: environmental crime, corruption and money laundering
Barone, Raffaella;Masciandaro, Donato
2025
Abstract
We offer a theoretical and empirical analysis that shows how corruption can be a ‘green grease’ that facilitates both environmental crimes and money laundering. Corruption can be an accelerator that amplifies the multiplier effect on illegal revenues. We model these relationships using a logistic function, which we calibrate to estimate overall environmental crime revenues using Italian regional data from 1995 to 2020.
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Kyklos - 2025 - Barone - Green Grease Environmental Crime Corruption and Money Laundering.pdf
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