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Do countries fail to raise environmental standards? An evaluation of policy options addressing "regulatory chill"

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  • Eric Neumayer

Abstract

It is an important prerequisite of sustainable development that countries are able to raise their environmental standards. Environmentalists are concerned, however, that with enhanced international capital mobility the fear of capital loss might induce countries not to raise standards — a phenomenon commonly described as "regulatory chill". This article argues that while it is difficult to prove the validity of this claim, there exists substantial anecdotal evidence that "regulatory chill" is relevant with respect to one issue at least: global warming. Several policy options are evaluated to deal with this problem according to a specified set of criteria. It is found that upward harmonisation of environmental standards and multilateral trade restrictions as part of multilateral environmental agreement are the preferred policy options.

Suggested Citation

  • Eric Neumayer, 2001. "Do countries fail to raise environmental standards? An evaluation of policy options addressing "regulatory chill"," International Journal of Sustainable Development, Inderscience Enterprises Ltd, vol. 4(3), pages 231-244.
    • Handle: RePEc:ids:ijsusd:v:4:y:2001:i:3:p:231-244
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    Citations

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    Cited by:

    1. Kyla Tienhaara, 2006. "Mineral investment and the regulation of the environment in developing countries: lessons from Ghana," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 6(4), pages 371-394, December.
    2. Brandi, Clara, 2017. "Handel und Umweltschutz: Chancen und Risiken," IDOS Discussion Papers 22/2017, German Institute of Development and Sustainability (IDOS).
    3. Jonas Gamso, 2018. "Trade-based adoption of voluntary environmental programs in the developing world: Racing to the top or stuck in the mud?," Policy Sciences, Springer;Society of Policy Sciences, vol. 51(4), pages 515-543, December.
    4. Timm Betz & Andrew Kerner, 2016. "The influence of interest: Real US interest rates and bilateral investment treaties," The Review of International Organizations, Springer, vol. 11(4), pages 419-448, December.

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