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Does an early start help or hurt? Statehood, institutions and modern climate change policies

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  • Ang, James B.
  • Fredriksson, Per G.

Abstract

This paper first hypothesizes that countries that have accumulated more statehood experience over the last two millennia tend to have more stringent climate change policies. A second hypothesis is that there are also indirect effects via the rule of law, democracy, corruption, political instability, regulatory quality, and government effectiveness. Our empirical evidence provides support for these hypotheses. An early start helps both directly and indirectly. The strongest indirect effects occur through government effectiveness, rule of law, and corruption. Climate change policy analysis may take these findings into account and incorporate state capacity building and bureaucratic and legal reforms into the design of international environmental agreements. However, the effects are unlikely to arrive quickly.

Suggested Citation

  • Ang, James B. & Fredriksson, Per G., 2021. "Does an early start help or hurt? Statehood, institutions and modern climate change policies," Energy Economics, Elsevier, vol. 94(C).
  • Handle: RePEc:eee:eneeco:v:94:y:2021:i:c:s0140988320304151
    DOI: 10.1016/j.eneco.2020.105075
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    More about this item

    Keywords

    Climate change policy; Environment; State antiquity; State capacity; Institutions; Government effectiveness; Rule of law; Corruption;
    All these keywords.

    JEL classification:

    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth

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