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Environmental regulation and development : a cross-country empirical analysis

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Author Info
Mody, Ashoka
Roy, Subhendu
Wheeler, David
Dasgupta, Susmita

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Abstract

The authors develop comparative indices of environmental policy and performance for 31 countries using a quantified analysis of reports prepared for the United Nations Conference on Environmental and Development. In cross-country regressions, they find a very strong, continuous association between their indicators and national income per capita, particularly when adjusted for purchasing power parity. Their results suggest a characteristic progression in development. Poor agrarian economies focus first on natural resource protection. With increased urbanization and industrialization, countries move from initial regulation of water pollution to air pollution control. The authors highlight the importance of institutional development. Environmental regulation is more advanced in developing countries with relatively secure property rights, effective legal and judicial systems, and efficient public administration.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 1448.

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Date of creation: 30 Apr 1995
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Handle: RePEc:wbk:wbrwps:1448

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Keywords: Public Health Promotion Environmental Economics&Policies Health Economics&Finance Agricultural Research Economic Theory&Research Environmental Economics&Policies Health Economics&Finance Agricultural Research Economic Theory&Research Environmental Governance

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  1. Taran Fæhn and Annegrete Bruvoll, 2006. "Richer and cleaner - at others' expense?," Discussion Papers 477, Research Department of Statistics Norway. [Downloadable!]
  2. Wheeler, David, 2001. "Racing to the bottom : foreign investment and air pollution in developing countries," Policy Research Working Paper Series 2524, The World Bank. [Downloadable!]
  3. Suphachol Suphachalasai, 2005. "Development, Environmental Policy, and Mass Media: Theory and Evidence," Environmental Economy and Policy Research Working Papers 15.2005, University of Cambridge, Department of Land Economics, revised 2005. [Downloadable!]
  4. Xinpeng Xu, 2000. "International Trade and Environmental Regulation: Time Series Evidence and Cross Section Test," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 17(3), pages 233-257, November. [Downloadable!] (restricted)
  5. Lorenzo Pellegrini & Reyer Gerlagh, 2005. "An Empirical Contribution to the Debate on Corruption,Democracy and Environmental Policy," Working Papers 2005.8, Fondazione Eni Enrico Mattei. [Downloadable!]
  6. Gopinath Pradhan & Kaustuva Barik, 1999. "Environment-Friendly Behaviour and Competitiveness: A Study of Pulp and Paper Industry in India," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 14(4), pages 481-501, December. [Downloadable!] (restricted)
  7. Paul Lanoie & Jérôme Moreau & Georges A. Tanguay, 2001. "Environmental Policy, Public Interest and Political Market," CIRANO Working Papers 2001s-37, CIRANO. [Downloadable!]
  8. Jie He & Paul MAKDISSI & Quentin WODON, 2007. "Corruption, Inequality, and Environmental Regulation," Cahiers de recherche 07-13, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke. [Downloadable!]
  9. Dasgupta, Susmita & Lucas, Robert E. B. & Wheeler, David, 1998. "Small manufacturing plants, pollution, and poverty : new evidence from Brazil and Mexico," Policy Research Working Paper Series 2029, The World Bank. [Downloadable!]
  10. Josh Ederington & Arik Levinson & Jenny Minier, 2003. "Footloose and Pollution-Free," NBER Working Papers 9718, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  11. Matthew Cole, 2000. "Air Pollution and ‘Dirty’ Industries: How and Why Does the Composition of Manufacturing Output Change with Economic Development?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 17(1), pages 109-123, September. [Downloadable!] (restricted)
  12. Abay Mulatu & Raymond J.G.M. Florax & Cees A.A.M. Withagen, 2001. "Environmental Regulation and Competitiveness," Tinbergen Institute Discussion Papers 01-039/3, Tinbergen Institute. [Downloadable!]
  13. Carol McAusland, 2003. "Trade, Politics,and the Environment: Tailpipe vs. Smokestack," University of California at Santa Barbara, Economics Working Paper Series 8-04, Department of Economics, UC Santa Barbara. [Downloadable!]
    Other versions:
  14. Heinz Jansen, 2001. "Induced Institutional Change in the Trade and Environment Debate," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 18(2), pages 149-172, February. [Downloadable!] (restricted)
  15. Xinpeng Xu, 1998. "International Trade and Environmental Policy: How Effective is 'Eco-Dumping'?," Trade Working Papers 436, East Asian Bureau of Economic Research. [Downloadable!]
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