IDEAS home Printed from https://ideas.repec.org/a/eee/wdevel/v147y2021ics0305750x21002187.html

Fish or steel? New evidence on the environment-economy trade-off in developing Vietnam

Author

Listed:
  • Nguyen, Quynh
  • Malesky, Edmund

Abstract

Trade and investment have contributed to the improvement of living standards in developing countries, but have also put severe pressure on natural environments. How do citizens in low-income countries manage this trade-off between economic growth and environmental protection? Using a discrete choice experiment conducted as part of three large, face-to-face nationally representative surveys of Vetnamese citizens (N=>12,500 respondents per wave), we find that prospective economic benefits increase public support for investment projects, whereas potential environmental harm resulting from investment decreases the public appetite for them. When economic and environmental factors are considered jointly, our results point to the existence of an environmental risk threshold. Environmental costs beyond that threshold lead citizens to reject investment projects, even when they generate considerable economic benefits. Our results challenge the theory that individuals in low-income countries prioritize development over environmental protection, and have implications for political leaders in designing their countries’ future investment policies.

Suggested Citation

  • Nguyen, Quynh & Malesky, Edmund, 2021. "Fish or steel? New evidence on the environment-economy trade-off in developing Vietnam," World Development, Elsevier, vol. 147(C).
    • Handle: RePEc:eee:wdevel:v:147:y:2021:i:c:s0305750x21002187
    DOI: 10.1016/j.worlddev.2021.105603
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305750X21002187
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.worlddev.2021.105603?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Thomas Bernauer & Quynh Nguyen, 2015. "Free Trade and/or Environmental Protection?," Global Environmental Politics, MIT Press, vol. 15(4), pages 105-129, November.
    2. Michael J. White & Lori M. Hunter, 2009. "Public Perception of Environmental Issues in a Developing Setting: Environmental Concern in Coastal Ghana," Social Science Quarterly, Southwestern Social Science Association, vol. 90(4), pages 960-982, December.
    3. Matthew E. Kahn & Matthew J. Kotchen, 2011. "Business Cycle Effects On Concern About Climate Change: The Chilling Effect Of Recession," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 2(03), pages 257-273.
    4. Rho, Sungmin & Tomz, Michael, 2017. "Why Don't Trade Preferences Reflect Economic Self-Interest?," International Organization, Cambridge University Press, vol. 71(S1), pages 85-108, April.
    5. Pandya, Sonal S., 2010. "Labor Markets and the Demand for Foreign Direct Investment," International Organization, Cambridge University Press, vol. 64(3), pages 389-409, July.
    6. Patrick J. Egan & Megan Mullin, 2016. "Recent improvement and projected worsening of weather in the United States," Nature, Nature, vol. 532(7599), pages 357-360, April.
    7. Scheve, Kenneth F. & Slaughter, Matthew J., 2001. "What determines individual trade-policy preferences?," Journal of International Economics, Elsevier, vol. 54(2), pages 267-292, August.
    8. Meng Yan & Zhen An, 2017. "Foreign Direct Investment and Environmental Pollution: New Evidence from China," Econometrics Letters, Bilimsel Mektuplar Organizasyonu (Scientific letters), vol. 4(1), pages 1-17.
    9. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    10. Kachi, Aya & Bernauer, Thomas & Gampfer, Robert, 2015. "Climate policy in hard times: Are the pessimists right?," Ecological Economics, Elsevier, vol. 114(C), pages 227-241.
    11. Mayda, Anna Maria & Rodrik, Dani, 2005. "Why are some people (and countries) more protectionist than others?," European Economic Review, Elsevier, vol. 49(6), pages 1393-1430, August.
    12. Horiuchi, Yusaku & Smith, Daniel M. & Yamamoto, Teppei, 2018. "Measuring Voters’ Multidimensional Policy Preferences with Conjoint Analysis: Application to Japan’s 2014 Election," Political Analysis, Cambridge University Press, vol. 26(2), pages 190-209, April.
    13. Gene M. Grossman & Alan B. Krueger, 1995. "Economic Growth and the Environment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(2), pages 353-377.
    14. Feng Hao, 2016. "A Panel Regression Study on Multiple Predictors of Environmental Concern for 82 Countries Across Seven Years," Social Science Quarterly, Southwestern Social Science Association, vol. 97(5), pages 991-1004, November.
    15. Cole, Matthew A., 2004. "Trade, the pollution haven hypothesis and the environmental Kuznets curve: examining the linkages," Ecological Economics, Elsevier, vol. 48(1), pages 71-81, January.
    16. Susmita Dasgupta & Benoit Laplante & Hua Wang & David Wheeler, 2002. "Confronting the Environmental Kuznets Curve," Journal of Economic Perspectives, American Economic Association, vol. 16(1), pages 147-168, Winter.
    17. Li, Xiaojun & Zeng, Ka, 2017. "Individual Preferences for FDI in Developing Countries: Experimental Evidence from China," Journal of Experimental Political Science, Cambridge University Press, vol. 4(3), pages 195-205, December.
    18. Michael Bechtel & Thomas Bernauer & Reto Meyer, 2012. "The green side of protectionism: Environmental concerns and three facets of trade policy preferences," Review of International Political Economy, Taylor & Francis Journals, vol. 19(5), pages 837-866.
    19. Geoff Brumfiel, 2002. "Developing nations take initiative on greenhouse gases," Nature, Nature, vol. 419(6910), pages 869-869, October.
    20. Hainmueller, Jens & Hopkins, Daniel J. & Yamamoto, Teppei, 2014. "Causal Inference in Conjoint Analysis: Understanding Multidimensional Choices via Stated Preference Experiments," Political Analysis, Cambridge University Press, vol. 22(1), pages 1-30, January.
    21. Dani Rodrik, 2016. "Premature deindustrialization," Journal of Economic Growth, Springer, vol. 21(1), pages 1-33, March.
    22. Pieter Pauw & Kennedy Mbeva & Harro Asselt, 2019. "Subtle differentiation of countries’ responsibilities under the Paris Agreement," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 5(1), pages 1-7, December.
    23. Nicholas Stern, 2008. "The Economics of Climate Change," American Economic Review, American Economic Association, vol. 98(2), pages 1-37, May.
    24. Michaël Aklin, 2016. "Re-exploring the Trade and Environment Nexus Through the Diffusion of Pollution," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 64(4), pages 663-682, August.
    25. Pinto,Pablo M., 2013. "Partisan Investment in the Global Economy," Cambridge Books, Cambridge University Press, number 9781107617360, August.
    26. Pinto,Pablo M., 2013. "Partisan Investment in the Global Economy," Cambridge Books, Cambridge University Press, number 9781107019102, August.
    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. E. Keith Smith & Dennis Kolcava & Thomas Bernauer, 2024. "Stringent sustainability regulations for global supply chains are supported across middle-income democracies," Nature Communications, Nature, vol. 15(1), pages 1-12, December.
    2. Jia, Zhijie & Liu, Yu & Lin, Boqiang, 2024. "The impossible triangle of carbon mitigation policy," Energy Policy, Elsevier, vol. 189(C).
    3. Shen, Jianfu & Peng, Daoju & Hui, Eddie C.M. & Fan, Kwok Yuen, 2025. "Performance measurability, local government’s incentives, and regional air pollution reduction," World Development, Elsevier, vol. 193(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. Kolcava, Dennis & Nguyen, Quynh & Bernauer, Thomas, 2019. "Does trade liberalization lead to environmental burden shifting in the global economy?," Ecological Economics, Elsevier, vol. 163(C), pages 98-112.
    2. Lukas Linsi, 2022. "Economic Narratives and the Legitimacy of Foreign Direct Investments," Politics and Governance, Cogitatio Press, vol. 10(3), pages 98-109.
    3. Rodríguez Chatruc, Marisol & Stein, Ernesto & Vlaicu, Razvan, 2021. "How issue framing shapes trade attitudes: Evidence from a multi-country survey experiment," Journal of International Economics, Elsevier, vol. 129(C).
    4. Richard Clark & Sarah Kreps & Adi Rao, 2025. "The political economy of reshoring: Evidence from the semiconductor industry," PLOS ONE, Public Library of Science, vol. 20(2), pages 1-14, February.
    5. Bernauer, Thomas & Nguyen, Quynh, 2015. "Environmental Concerns and Individual Trade Policy Preferences in Developing Countries," Papers 837, World Trade Institute.
    6. Nils D Steiner, 2018. "Attitudes towards the Transatlantic Trade and Investment Partnership in the European Union: The treaty partner heuristic and issue attention," European Union Politics, , vol. 19(2), pages 255-277, June.
    7. Sebri, Maamar, 2009. "La Zone Méditerranéenne Face à la Pollution de L’air : Une Investigation Econométrique [The Mediterranean Zone in front of Air pollution: an Econometric Investigation]," MPRA Paper 32382, University Library of Munich, Germany.
    8. Rodríguez Chatruc, Marisol & Stein, Ernesto H. & Vlaicu, Razvan, 2019. "Trade Attitudes in Latin America: Evidence from a Multi-Country Survey Experiment," IDB Publications (Working Papers) 9603, Inter-American Development Bank.
    9. Mina Baliamoune-Lutz, 2017. "Trade and Environmental Quality in African Countries: Do Institutions Matter?," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 43(1), pages 155-172, January.
    10. Torres-Brito, David Israel & Cruz-Aké, Salvador & Venegas-Martínez, Francisco, 2023. "Impacto de los contaminantes por gases de efecto invernadero en el crecimiento económico en 86 países (1990-2019): Sobre la curva inversa de Kuznets [Impact of the Effect of Greenhouse Gas Pollutants on Economic Growth in 86 Countries (1990-2019):," MPRA Paper 119031, University Library of Munich, Germany.
    11. Valeria Costantini & Chiara Martini, 2010. "A Modified Environmental Kuznets Curve for sustainable development assessment using panel data," International Journal of Global Environmental Issues, Inderscience Enterprises Ltd, vol. 10(1/2), pages 84-122.
    12. Thais NUNEZ-ROCHA & Inmaculada MARTíNEZ-ZARZOSO, 2018. "Is National Environmental Legislation Affecting Emissions?," LEO Working Papers / DR LEO 2505, Orleans Economics Laboratory / Laboratoire d'Economie d'Orleans (LEO), University of Orleans.
    13. Sabuj Kumar Mandal & Devleena Chakravarty, 2017. "Role of energy in estimating turning point of Environmental Kuznets Curve: an econometric analysis of the existing studies," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 19(2), pages 387-401, October.
    14. Stern, David I., 2014. "The Environmental Kuznets Curve: A Primer," Working Papers 249424, Australian National University, Centre for Climate Economics & Policy.
    15. Daberechi Chikezie Ekwueme & Taiwo Temitope Lasisi & Kayode Kolawole Eluwole, 2023. "Environmental sustainability in Asian countries: Understanding the criticality of economic growth, industrialization, tourism import, and energy use," Energy & Environment, , vol. 34(5), pages 1592-1618, August.
    16. Michaël Aklin, 2016. "Re-exploring the Trade and Environment Nexus Through the Diffusion of Pollution," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 64(4), pages 663-682, August.
    17. Linda Kleemann & Awudu Abdulai, 2013. "The Impact Of Trade And Economic Growth On The Environment: Revisiting The Cross‐Country Evidence," Journal of International Development, John Wiley & Sons, Ltd., vol. 25(2), pages 180-205, March.
    18. Davor Mance & Dejan Miljenović & Ismar Velić, 2025. "Do Economies Recover Their Fisheries? Evidence of an Environmental Kuznets Curve for Fish Stock Status," Sustainability, MDPI, vol. 17(14), pages 1-18, July.
    19. Priscilla Massa-Sánchez & Luis Quintana-Romero & Ronny Correa-Quezada & María de la Cruz del Río-Rama, 2020. "Empirical Evidence in Ecuador between Economic Growth and Environmental Deterioration," Sustainability, MDPI, vol. 12(3), pages 1-20, January.
    20. Kearsley, Aaron & Riddel, Mary, 2010. "A further inquiry into the Pollution Haven Hypothesis and the Environmental Kuznets Curve," Ecological Economics, Elsevier, vol. 69(4), pages 905-919, February.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;

    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:eee:wdevel:v:147:y:2021:i:c:s0305750x21002187. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/worlddev .

    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.