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Corruption, Political Competition and Environmental Policy

Author

Listed:
  • John K. Wilson

    (School of Economics, University of Adelaide)

  • Richard Damania

    (School of Economics, University of Adelaide)

Abstract

There is a growing literature on the causes and consequences of corruption. A common and often unsubstantiated assertion is that countries which exhibit a low level of political competition are more likely to suffer higher levels of corruption. In this paper we examine the effects of corruption on environmental policy under varying degrees of political competition. An important feature of the model, which has been neglected in the existing literature, is that corruption may occur at different levels of government, such as the payment of bribes to politicians who determine policies, or bureaucrats who administer environmental regulations. We analyse the relationship between political competition and environmental outcomes in a model of stratified corruption and identify the benefits and limits of political competition. Our results suggest that while political competition may yield policy improvements, it cannot eliminate corruption at all levels of government.

Suggested Citation

  • John K. Wilson & Richard Damania, 2003. "Corruption, Political Competition and Environmental Policy," School of Economics and Public Policy Working Papers 2003-09, University of Adelaide, School of Economics and Public Policy.
    • Handle: RePEc:adl:wpaper:2003-09
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    File URL: https://media.adelaide.edu.au/economics/papers/doc/wp2003-09.pdf
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    References listed on IDEAS

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    2. Schulze, Gunther G. & Ursprung, Heinrich W. (ed.), 2001. "International Environmental Economics: A Survey of the Issues," OUP Catalogue, Oxford University Press, number 9780198297666.
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    Cited by:

    1. Richard Damania & Arnab Gupta, 2004. "Political Competition, Welfare Outcomes and Expenditures on Human Development: The Experience of a Democracy," Econometric Society 2004 Australasian Meetings 147, Econometric Society.

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    More about this item

    Keywords

    corruption; lobbying; political competition; regulatory compliance; bribery;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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