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- Publisher
- Springer Journals
- Copyright
- Copyright © 2017 by Springer-Verlag Berlin Heidelberg
- Subject
- Economics; Regional/Spatial Science; Agricultural Economics; Geographical Information Systems/Cartography; Landscape/Regional and Urban Planning; Environmental Economics; Demography
- ISSN
- 1864-4031
- eISSN
- 1864-404X
- DOI
- 10.1007/s12076-017-0186-x
- Publisher site
- See Article on Publisher Site
Abstract
Economic growth and the rule of law development are two important factors that affect the stringency of environmental policy. Due to the reversible causality between the two variables, a reduced-form relationship is likely to oversimplify their effects. This paper develops a equation system to illuminate the interactive relationships between rule of law, economic development and the stringency of environmental policies and tests the robustness of the variables using sensitivity and weak instrumental variable tests. Nine determinants of rule-of-law including presence of a parliamentary system, coup d’états, and the degree of social fractionalization, are examined. We find that economic development, the rule of law, and their interactions have direct and indirect effects on a state’s environmental policies. We further find political coups have a significant impact on adherence to the rule of law. The nonparametric simulation indicates that long-run effect of rule-of-law development on environmental protection is likely considerably stronger than its direct effect.
Journal
Letters in Spatial and Resource Science – Springer Journals
Published: Apr 4, 2017