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The Rule of Law and the Pattern of Environment Protection

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  • Muthukumara Mani
  • Per G. Fredriksson

Abstract

We develop and test a theory of the rule of law and environmental policy formation. In our model an increase in the degree of rule of law has two opposing partial effects on environmental policy: first, a greater share of policy decisions are implemented according to law; second, industry bribery efforts increase because more is at stake. Moreover, we find that an increase in corruptibility of policymakers lowers the stringency of environmental policy. The empirical findings suggest that a greater degree of rule of law raises environmental policy stringency, but the effect is lower where corruptibility is high.

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Bibliographic Info

Paper provided by International Monetary Fund in its series IMF Working Papers with number 02/49.

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Length: 27
Date of creation: 01 Mar 2002
Date of revision:
Handle: RePEc:imf:imfwpa:02/49

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Cited by:
  1. Busse, Matthias, 2004. "Trade, environmental regulations and the World Trade Organization : new empirical evidence," Policy Research Working Paper Series 3361, The World Bank.

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