The Rule of Law and the Pattern of Environmental Protection
27 Pages Posted: 29 Jan 2006
Date Written: March 2002
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.
Keywords: Property Rights, Corruption, Rule of Law, Environmental Policy
JEL Classification: Q28, D72, D78, K40
Suggested Citation: Suggested Citation