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Strategic interaction and institutional quality determinants of environmental regulations

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  • Galinato, Gregmar I.
  • Chouinard, Hayley H.

Abstract

We provide a framework that links the impacts of own and neighboring measures of institutional quality as well as neighboring country environmental regulations on environmental regulation stringency in own country. We estimate a Spatial Panel Durbin model to identify significant determinants of environmental regulations for several European countries. We find no evidence of strategic interaction as the environmental regulations implemented by a neighbor have no significant impact on environmental regulations implemented in the own country. The higher the quality of government institutions in a country, the more stringent the implementation of environmental regulations. Additionally, some institutional quality variables significantly positively impact the stringency of environmental regulations in neighboring countries.

Suggested Citation

  • Galinato, Gregmar I. & Chouinard, Hayley H., 2018. "Strategic interaction and institutional quality determinants of environmental regulations," Resource and Energy Economics, Elsevier, vol. 53(C), pages 114-132.
    • Handle: RePEc:eee:resene:v:53:y:2018:i:c:p:114-132
    DOI: 10.1016/j.reseneeco.2018.04.001
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    More about this item

    Keywords

    Environmental regulations; Institutions spillovers; Spatial model; Strategic interaction;
    All these keywords.

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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