IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/98888.html
   My bibliography  Save this paper

Individualism and climate change policies: International evidence

Author

Listed:
  • Vu, Trung V.

Abstract

This paper examines the extent to which the cultural dimension of individualism-collectivism matters for the stringency of climate change policies across the world. I postulate that individualistic societies are endowed with a better capacity to implement stringent climate change regulations compared with their collectivistic counterparts. This notion is tested using data for a world sample of up to 92 countries. To achieve causal inference, I isolate exogenous sources of variation in individualistic cultures, based on blood distance to the UK and historical pathogen prevalence. The results lend strong empirical support to my propositions. I also find evidence that individualism exerts a positive influence on the stringency of climate change policies through enhancing the quality of governance and female political presentation. To account for unobserved country-specific factors, I perform subnational analyses using data from the World Values Survey. The results indicate that survey participants with an orientation towards individualistic cultures tend to self-report positive attitudes to pro-environmental policies, which is consistent with the international evidence.

Suggested Citation

  • Vu, Trung V., 2020. "Individualism and climate change policies: International evidence," MPRA Paper 98888, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:98888
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/98888/1/MPRA_paper_98888.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Andrei Shleifer & Florencio Lopez-de-Silanes & Rafael La Porta, 2008. "The Economic Consequences of Legal Origins," Journal of Economic Literature, American Economic Association, vol. 46(2), pages 285-332, June.
    2. Trung V. Vu, 2021. "Climate, diseases, and the origins of corruption," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 29(4), pages 621-649, October.
    3. Linghui Tang & Peter E Koveos, 2008. "A framework to update Hofstede's cultural value indices: economic dynamics and institutional stability," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(6), pages 1045-1063, September.
    4. Kai Carstensen & Erich Gundlach, 2006. "The Primacy of Institutions Reconsidered: Direct Income Effects of Malaria Prevalence," The World Bank Economic Review, World Bank, vol. 20(3), pages 309-339.
    5. Sanderson, Eleanor & Windmeijer, Frank, 2016. "A weak instrument F-test in linear IV models with multiple endogenous variables," Journal of Econometrics, Elsevier, vol. 190(2), pages 212-221.
    6. La Porta, Rafael & Lopez-de-Silanes, Florencio & Shleifer, Andrei & Vishny, Robert, 1999. "The Quality of Government," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 15(1), pages 222-279, April.
    7. Trung V. Vu, 2022. "Does institutional quality foster economic complexity? The fundamental drivers of productive capabilities," Empirical Economics, Springer, vol. 63(3), pages 1571-1604, September.
    8. David E. Bloom & Jeffrey D. Sachs, 1998. "Geography, Demography, and Economic Growth in Africa," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 29(2), pages 207-296.
    9. Hausman, Jerry, 2015. "Specification tests in econometrics," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 38(2), pages 112-134.
    10. Olsson, Ola & Paik, Christopher, 2016. "Long-run cultural divergence: Evidence from the Neolithic Revolution," Journal of Development Economics, Elsevier, vol. 122(C), pages 197-213.
    11. Wilson, John K. & Damania, Richard, 2005. "Corruption, political competition and environmental policy," Journal of Environmental Economics and Management, Elsevier, vol. 49(3), pages 516-535, May.
    12. Per G. Fredriksson & Eric Neumayer, 2016. "Corruption and Climate Change Policies: Do the Bad Old Days Matter?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 63(2), pages 451-469, February.
    13. Per Fredriksson & Eric Neumayer & Gergely Ujhelyi, 2007. "Kyoto Protocol cooperation: Does government corruption facilitate environmental lobbying?," Public Choice, Springer, vol. 133(1), pages 231-251, October.
    14. Damania, Richard & Fredriksson, Per G. & List, John A., 2003. "Trade liberalization, corruption, and environmental policy formation: theory and evidence," Journal of Environmental Economics and Management, Elsevier, vol. 46(3), pages 490-512, November.
    15. Fredriksson, Per G. & Neumayer, Eric, 2013. "Democracy and climate change policies: Is history important?," Ecological Economics, Elsevier, vol. 95(C), pages 11-19.
    16. Jeffrey D. Sachs, 2003. "Institutions Don't Rule: Direct Effects of Geography on Per Capita Income," NBER Working Papers 9490, National Bureau of Economic Research, Inc.
    17. Kyriacou, Andreas P., 2016. "Individualism–collectivism, governance and economic development," European Journal of Political Economy, Elsevier, vol. 42(C), pages 91-104.
    18. Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "The Colonial Origins of Comparative Development: An Empirical Investigation," American Economic Review, American Economic Association, vol. 91(5), pages 1369-1401, December.
    19. Chandan Jha & Bibhudutta Panda, 2017. "Individualism and Corruption: A Cross-Country Analysis," Economic Papers, The Economic Society of Australia, vol. 36(1), pages 60-74, March.
    20. Nikolaev, Boris & Boudreaux, Christopher & Salahodjaev, Rauf, 2017. "Are individualistic societies less equal? Evidence from the parasite stress theory of values," Journal of Economic Behavior & Organization, Elsevier, vol. 138(C), pages 30-49.
    21. Dani Rodrik & Arvind Subramanian & Francesco Trebbi, 2004. "Institutions Rule: The Primacy of Institutions Over Geography and Integration in Economic Development," Journal of Economic Growth, Springer, vol. 9(2), pages 131-165, June.
    22. James B. Ang & Per G. Fredriksson, 2017. "Statehood Experience, Legal Traditions, And Climate Change Policies," Economic Inquiry, Western Economic Association International, vol. 55(3), pages 1511-1537, July.
    23. Casper Hansen & Peter Jensen & Christian Skovsgaard, 2015. "Modern gender roles and agricultural history: the Neolithic inheritance," Journal of Economic Growth, Springer, vol. 20(4), pages 365-404, December.
    24. Cragg, John G. & Donald, Stephen G., 1993. "Testing Identifiability and Specification in Instrumental Variable Models," Econometric Theory, Cambridge University Press, vol. 9(2), pages 222-240, April.
    25. Fredriksson, Per G. & Svensson, Jakob, 2003. "Political instability, corruption and policy formation: the case of environmental policy," Journal of Public Economics, Elsevier, vol. 87(7-8), pages 1383-1405, August.
    26. Seguino, Stephanie, 2011. "Help or Hindrance? Religion's Impact on Gender Inequality in Attitudes and Outcomes," World Development, Elsevier, vol. 39(8), pages 1308-1321, August.
    27. Greif,Avner, 2006. "Institutions and the Path to the Modern Economy," Cambridge Books, Cambridge University Press, number 9780521671347.
    28. James B. Ang, 2019. "Agricultural legacy and individualistic culture," Journal of Economic Growth, Springer, vol. 24(4), pages 397-425, December.
    29. Eric Neumayer, 2002. "Do Democracies Exhibit Stronger International Environmental Commitment? A Cross-country Analysis," Journal of Peace Research, Peace Research Institute Oslo, vol. 39(2), pages 139-164, March.
    30. Fredriksson, Per G & Gaston, Noel, 2000. "Ratification of the 1992 Climate Change Convention: What Determines Legislative Delay?," Public Choice, Springer, vol. 104(3-4), pages 345-368, September.
    31. Fredriksson, Per G. & Wollscheid, Jim R., 2008. "The political economy of investment: The case of pollution control technology," European Journal of Political Economy, Elsevier, vol. 24(1), pages 53-72, March.
    32. Welsch, Heinz, 2004. "Corruption, growth, and the environment: a cross-country analysis," Environment and Development Economics, Cambridge University Press, vol. 9(5), pages 663-693, October.
    33. Mavisakalyan, Astghik & Tarverdi, Yashar, 2019. "Gender and climate change: Do female parliamentarians make difference?," European Journal of Political Economy, Elsevier, vol. 56(C), pages 151-164.
    34. Ziegler, Andreas, 2017. "Political orientation, environmental values, and climate change beliefs and attitudes: An empirical cross country analysis," Energy Economics, Elsevier, vol. 63(C), pages 144-153.
    35. Congleton, Roger D, 1992. "Political Institutions and Pollution Control," The Review of Economics and Statistics, MIT Press, vol. 74(3), pages 412-421, August.
    36. Jordan Smith, Daniel, 2003. "Patronage, Per Diems and the "Workshop Mentality": The Practice of Family Planning Programs in Southeastern Nigeria," World Development, Elsevier, vol. 31(4), pages 703-715, April.
    37. Richard Damania & Erkan Yalcin, 2005. "Corruption and Political Competition," Microeconomics 0510012, University Library of Munich, Germany.
    38. Per Fredriksson & Jim Wollscheid, 2015. "Legal Origins and Climate Change Policies in Former Colonies," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 62(2), pages 309-327, October.
    39. Eric Neumayer, 2002. "Does Trade Openness Promote Multilateral Environmental Cooperation?," The World Economy, Wiley Blackwell, vol. 25(6), pages 815-832, June.
    40. Barbier, Edward B. & Damania, Richard & Leonard, Daniel, 2005. "Corruption, trade and resource conversion," Journal of Environmental Economics and Management, Elsevier, vol. 50(2), pages 276-299, September.
    41. Thomas Bernauer & Vally Koubi, 2013. "Are bigger governments better providers of public goods? Evidence from air pollution," Public Choice, Springer, vol. 156(3), pages 593-609, September.
    42. Mr. Vito Tanzi, 1994. "Corruption, Governmental Activities, and Markets," IMF Working Papers 1994/099, International Monetary Fund.
    43. Davis, Lewis S. & Williamson, Claudia R., 2019. "Does individualism promote gender equality?," World Development, Elsevier, vol. 123(C), pages 1-1.
    44. Conley, T. G., 1999. "GMM estimation with cross sectional dependence," Journal of Econometrics, Elsevier, vol. 92(1), pages 1-45, September.
    45. Lopez, Ramon & Mitra, Siddhartha, 2000. "Corruption, Pollution, and the Kuznets Environment Curve," Journal of Environmental Economics and Management, Elsevier, vol. 40(2), pages 137-150, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mohanty, Aatishya & Sharma, Swati, 2022. "COVID-19 regulations, culture, and the environment," Economic Modelling, Elsevier, vol. 113(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Per G. Fredriksson & Eric Neumayer, 2016. "Corruption and Climate Change Policies: Do the Bad Old Days Matter?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 63(2), pages 451-469, February.
    2. Fredriksson, Per G. & Neumayer, Eric, 2013. "Democracy and climate change policies: Is history important?," Ecological Economics, Elsevier, vol. 95(C), pages 11-19.
    3. Trung V. Vu, 2022. "Does institutional quality foster economic complexity? The fundamental drivers of productive capabilities," Empirical Economics, Springer, vol. 63(3), pages 1571-1604, September.
    4. Arminen, Heli & Menegaki, Angeliki N., 2019. "Corruption, climate and the energy-environment-growth nexus," Energy Economics, Elsevier, vol. 80(C), pages 621-634.
    5. Vu, Trung V., 2021. "Do genetically fragmented societies respond less to global warming? Diversity and climate change policies," Energy Economics, Elsevier, vol. 104(C).
    6. Tadadjeu, Sosson & Njangang, Henri & Woldemichael, Andinet, 2023. "Are resource-rich countries less responsive to global warming? Oil wealth and climate change policy," Energy Policy, Elsevier, vol. 182(C).
    7. Stephen Knowles & P. Dorian Owen, 2010. "Which Institutions are Good for Your Health? The Deep Determinants of Comparative Cross-country Health Status," Journal of Development Studies, Taylor & Francis Journals, vol. 46(4), pages 701-723.
    8. Haiqing Hu & Di Chen & Chun‐Ping Chang & Yin Chu, 2021. "The Political Economy Of Environmental Consequences: A Review Of The Empirical Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 35(1), pages 250-306, February.
    9. Halkos, George E. & Tzeremes, Nickolaos G., 2013. "Carbon dioxide emissions and governance: A nonparametric analysis for the G-20," Energy Economics, Elsevier, vol. 40(C), pages 110-118.
    10. Mavisakalyan, Astghik & Tarverdi, Yashar & Weber, Clas, 2018. "Talking in the present, caring for the future: Language and environment," Journal of Comparative Economics, Elsevier, vol. 46(4), pages 1370-1387.
    11. Alvar Kangur, 2008. "What rules in the 'deep' determinants of comparative development?," Economics Series Working Papers 386, University of Oxford, Department of Economics.
    12. James B. Ang & Per G. Fredriksson, 2017. "Statehood Experience, Legal Traditions, And Climate Change Policies," Economic Inquiry, Western Economic Association International, vol. 55(3), pages 1511-1537, July.
    13. Kyriacou, Andreas P., 2016. "Individualism–collectivism, governance and economic development," European Journal of Political Economy, Elsevier, vol. 42(C), pages 91-104.
    14. 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).
    15. Mavisakalyan, Astghik & Tarverdi, Yashar, 2019. "Gender and climate change: Do female parliamentarians make difference?," European Journal of Political Economy, Elsevier, vol. 56(C), pages 151-164.
    16. P. Dorian Owen, 2017. "Evaluating Ingenious Instruments for Fundamental Determinants of Long-Run Economic Growth and Development," Econometrics, MDPI, vol. 5(3), pages 1-33, September.
    17. Trung V. Vu, 2021. "Climate, diseases, and the origins of corruption," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 29(4), pages 621-649, October.
    18. Vu, Trung V., 2021. "Statehood experience and income inequality: A historical perspective," Economic Modelling, Elsevier, vol. 94(C), pages 415-429.
    19. Panteli Maria & Delipalla Sofia, 2022. "The Impact of Institutions on Economic and Environmental Performance: Evidence From Europe," South East European Journal of Economics and Business, Sciendo, vol. 17(2), pages 125-141, December.
    20. Marchand, Sébastien, 2016. "The colonial origins of deforestation: an institutional analysis," Environment and Development Economics, Cambridge University Press, vol. 21(3), pages 318-349, June.

    More about this item

    Keywords

    climate change; environment; individualism; collectivism; culture.;
    All these keywords.

    JEL classification:

    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • Z10 - Other Special Topics - - Cultural Economics - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:98888. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.