Stringency of Environmental Regulations Vs. Global Competitiveness: Empirical Analysis
The article focuses on assessing the global competitiveness of countries in the context of their environmental regulatory stringency. The article analyzes the views of scientists on the need to slow down economic growth and transition to stable economy, the relationship between economic growth and environmental changes in the form of environmental Kuznets curve, as well as environmental policy instruments along with the degree of their stringency. The authors put forward and confirm the hypothesis that the quality of institutions and the value assessment of environmental goods directly affect the competitiveness of national economies, regardless of environmental stringency. A comprehensive statistical analysis of the perennial indices of global competitiveness, environmental performance and stringency of environmental regulations on a large sample of countries confirms the hypothesis that significant stringency of environmental regulations in welfare states can be internalized and that their global competitiveness remains high against the background of high-quality environmental goods. (original abstract)
- Ternopil National Economic University, Ternopil, Ukraine
- Ternopil National Economic University, Ternopil, Ukraine
- Oleksandr Dluhopolskyi, Ternopil National Economic University, Ternopil, Ukraine, Higher School of Economics and Innovation, Lublin, Poland
- University of Lodz, Lodz, Poland
- Al Sayed, A.R., Sek, S.K. (2013). Environmental Kuznets curve: evidences from developed and developing economies. Applied Mathematical Sciences, 7(22), 1081-1092.
- Apergis, N., Ozturk, І. (2015). Testing environmental Kuznets curve hypothesis in Asian countries. Ecological Indicators, 52, 16-22.
- Bilan, Y., Lyeonov, S., Stoyanets, N., & Vysochyna, A. (2018). The impact of environmental determinants of sustainable agriculture on country food security. International Journal of Environmental Technology and Management, 21(5-6), 289-305.
- Birdsall, N., Wheeler, D. (1993). Trade policy and industrial policy in Latin America - where are the pollution havens. World Bank Discussion Paper, 1, 159-167.
- Botta, E., Koźluk, T. (2014). Measuring environmental policy stringency in OECD countries. OECD Economics Department Working Papers, 1177.
- Bouwer, K. (2018) The unsexy future of climate change litigation. Journal of Environmental Law, 30(3), 483-506.
- Brunel, C., Levinson, A. (2013). Measuring environmental regulatory stringency. OECD Working Paper, 5.
- Butlin, J. (1987). Our common future. By World commission on environment and development. Journal of International Development, 1(2), 284-287.
- Čiegis, R., Štreimikienė, D., Zavadskas, E.K. (2008). The use of environmental Kuznets curve: environmental and economic implications. International Journal of Environment and Pollution, 33(2/3), 313-335.
- Cole, M.A., Elliott, R.J., Fredriksson, P.G. (2006). Endogenous pollution havens: does FDI influence environmental regulations? Scandinavian Journal of Economics, 108(1), 157-178.
- Cole, M.A., Elliott, R.J., Zhang, L. (2017). Foreign direct investment and the environment. Annual Review of Environment and Resources, 42(1), 465-487.
- Country Codes - ISO 3166. URL: https://www.iso.org/iso-3166-country-codes.html.
- Dasgupta, P., Maler, K.-G. (1994). Poverty, institutions, and the environmental-resource base. World Bank Environment Paper, 9.
- Dinda, S. (2004). Environmental Kuznets curve hypothesis: a survey. Ecological Economics, 49(4), 431-455.
- Dluhopolskyi, O., Koziuk, V., Ivashuk, Y., Klapkiv, Y. (2019). Environmental welfare: quality of policy vs. society's values. Problemy Ekorozwoju / Problems of Sustainable Development, 14(1), 19-28.
- Dluhopolskyi, O., Koziuk, V., Ivashuk, Y., Panukhnyk, O., Virkovska, A. (2019). Empirical evaluation of preferences by ecological factors of individual welfare of Ukrainians. Journal of Geology, Geography and Geoecology, 28(1), 39-50.
- Druzin, B.H. (2016). A plan to strengthen the Paris agreement. Fordham Law Review, 84.
- Dunning, J.H. (1977). Trade, location of economic activity and the MNE: a search for an eclectic approach. The international allocation of economic activity. London: Palgrave Macmillan.
- Dunning, J.H. (1998). Location and the multinational enterprise: a neglected factor. Journal of International Business Studies, 40(1), 45-66.
- Ehrlich, P.R. (1968). The population bomb. New York: Ballantine Books.
- Environmental Performance Index - EPI Report (2019). URL: http://sedac.ciesin.columbia.edu/data/collection/epi/sets/browse.
- Environmental Sustainability Index - ESI Report (2019). URL: http://sedac.ciesin.columbia.edu/data/collection/esi/sets/browse.
- Esteve, V., Tamarit, C. (2012). Is there an environmental Kuznets curve for Spain? Fresh evidence from old data. Economic Modelling, 29(6), 2696-2703.
- Esty, D.C., Porter, M.E. (2001). Ranking national environmental regulation and performance: а leading indicator of future competitiveness. The global competitiveness report - 2002, 78-100.
- Ferrari, S.S. (2018). The impact of environmental policy stringency on FDI flows: Evidence from BRIICS-OECD flow panel data: Master thesis.
- Fosten, J., Morley, B., Taylor, T. (2012). Dynamic misspecification in the environmental Kuznets curve: evidence from CO2 and SO2 emissions in the United Kingdom. Ecological Economics, 76, 25-33
- Fogarassy, C., Nguyen, H. H., Olah, J., & Popp, J. (2018). Transition management applications to accelerate sustainable food consumption -comparative analysis between Switzerland and Hungary. Journal of International Studies, 11(3), 31-43. doi:10.14254/2071-8330.2018/11-3/3
- Franklin, R.S., Ruth, M. (2012). Growing up and cleaning up: the environmental Kuznets curve redux. Applied Geography, 32(1), 29-39.
- Galeotti, M., Lanza, A., Pauli, F. (2006). Reassessing the environmental Kuznets curve for CO2 emissions: a robustness exercise. Ecological Economics, 57(1), 152-163.
- Ginevičius, R., Lapinskienė, G., Peleckis, K. (2017). The evolution of the environmental Kuznets curve concept: the review of the research. Panoeconomicus, 64(1), 93-112.
- Grossman, G.M., Krueger, A.B. (1991). Environmental impact of a North American free Trade agreement. National Bureau of Economic Research Working Paper, 3194.
- Grossman, G.M., Krueger, A.B. (1995). Economic growth and the environment. The Quarterly Journal of Economics, 110(2), 353-377.
- Harring, N. (2008). An explanation to the relationship between institutional quality and stringent environmental policy. 2nd ECPR Graduate Conference, Universitat Autonoma Barcelona 25-27.
- Hilton, F.G., Levinson, A. (1998). Factoring the environmental Kuznets curve: evidence from automotive lead emissions. Journal of Environmental Economics and Management, 35(2), 126-141.
- Holtz-Eakin, D., Selden, T.M. (1995). Stoking the fires? CO2 emissions and economic growth. Journal of Public Economics, 57(1), 85-101.
- IPCC (2001). Climate Change 2001: Synthesis Report. A contribution of Working groups I, II, and III to the Third assessment report of the intergovernmental panel on climate change. London: Cambridge University Press.
- Knill, C., Schulze, K., Tosun, J. (2012). Regulatory policy outputs and impacts: exploring a complex relationship. Regulation & Governance, 6(4), 427-444
- Koziuk, V., Dluhopolskyi, O. (2018). Resource curse: the role of weak institutions and crony-sectors. The Ideology and Politics Journal (Post-Soviet Transit and Demodernization), 1(9), 68-102.
- Koziuk, V., Dluhopolskyi, O., Farion, A., Dluhopolska, T. (2018). Crony sectors as a barrier to economic well-being and ecologization (case of Ukraine). Economics and Sociology, 11(3), 113-132.
- Koziuk, V., Dluhopolskyi, O., Hayda, Y., Klapkiv, Y. (2019). Does educational quality drive ecological performance? Case of high and low developed countries. Global Journal of Environmental Science and Management, 5(SI), 22-32.
- Koziuk, V., Dluhopolskyi, O., Hayda, Y., Shymanska, O. (2018). Typology of welfare states: quality criteria for governance and ecology. Problems and Perspectives in Management, 16(4), 235-245.
- Koziuk, V., Dluhopolskyi, O., Petruk, V. (2019). Globalization, innovation and fragility of optimal fiscal zones: secessions risks of Belgium, lessons for Ukraine. The Ideology and Politics Journal (Secessionisms in Europe: Societies, Political Systems and International Order under Stress), 1(12), 60-90.
- Kozlovskyi, S., Khadzhynov, I., Vlasenko, I., Marynchak, L. (2017). Managing the sustainability of economic system as the basis of investment development in Ukraine. Investment Management and Financial Innovations, 14(4), 50-59.
- Kozlovskyi, S., Grynyuk, R., Baltremus, O., Ivashchenko, A. (2017). The methods of state regulation of sustainable development of agrarian sector in Ukraine. Problems and Perspectives in Management, 15(2-2), 332-343.
- Lapinskienė, G., Peleckis, K., Radavičius, M. (2015). Economic development and greenhouse gas emissions in the EU countries. Journal of Business Economics and Management, 16(6), 1109-1123.
- Lapinskienė, G., Tvaronavičienė, M., Vaitkus, P. (2014). The emissions of greenhouse gases and economic growth - the evidence of the presence of the environmental Kuznets curve in the European Union countries. Technological and Economic Development of Economy, 20(1), 65-78.
- Le Roux J., Williams, E., Staines, A., Bergmann, A. (2008). Environmental quality and the cost of environmental regulation: a comparison of Scotland with the international community. European Environment, 18, 45-54.
- Levinson, A. (1996). Environmental regulations and manufacturers' location choices: evidence from the census of manufactures. Journal of Public Economics, 62(1-2), 5-29.
- List, J.A., Co, C.Y. (2000). The effects of environmental regulations on foreign direct investment. Journal of Environmental Economics and Management, 40(1), 1-20.
- Madsen, P.M. (2009). Does corporate investment drive a 'Race to the bottom' in environmental protection? A reexamination of the effect of environmental regulation on investment. Academy of Management Journal, 52(6), 1297-1318.
- Magnani, E. (2000). The environmental Kuznets curve, environmental protection policy and income distribution. Ecological Economics, 32, 431-443.
- Malthus, T.R. (1798). An essay on the principle of population. London: J. Johnson.
- Mani, M., Wheeler, D. (1998). In search of pollution havens? Dirty industry in the world economy, 1960 to 1995. The Journal of Environment & Development, 7(3), 215-247.
- Marikina, M. (2018). The Impact of Ecological Regulations and Management on National Competitiveness in the Balkan States. Journal of Competitiveness, 10(4), 120-135. https://doi.org/10.7441/joc.2018.04.08
- Meadows, D.H., Meadows, D.L., Randers, J. (1992). Beyond the limits: confronting global collapse, envisioning a sustainable future. Chelsea Green Publication, 320 p.
- Meadows, D.H., Meadows, D.L., Randers, J., Behrens, W.W. (1972). Limits to growth: a report for the Club of Rome's project on the predicament of mankind. New York: Universe Books.
- Meadows, D.H., Randers, J., Meadows, D.L. (2004). Limits to growth: the 30-year update. Vermont: Chelsea Green Publishing.
- Moosa, I.A. (2002). Foreign direct investment. London: Palgrave Macmillan.
- Panayotou, T. (2003). Economic growth and the environment. Economic survey of Europe / Ed. United Nations Economic Commission for Europe. New York: United Nations Publishing.
- Peel, J., Lin, J. (2019). Transnational climate litigation: the contribution of the global South. American Journal of International Law, 113(3).
- Povitkina, M. (2018). Necessary but not sustainable? The limits of democracy in achieving environmental sustainability. Göteborg, Department of Political Science: Doctoral thesis.
- Randers, J. (2012). 2052: A global forecast for the next forty years. Vermont: Chelsea Green Publishing.
- Roberts, J.T., Grims, P.E. (1997). Carbon intensity and economic development 1962-91: a brief exploration of the environmental Kuznets curve. World Development, 25(2), 191-198.
- Sauter, C. (2014). How should we measure environmental policy stringency? A new approach. IRENE Working Paper, 14-01.
- Selden, T.M., Song, D. (1994). Environmental quality and development: is there a Kuznets curve for air pollution emissions? Journal of Environmental Economics and Management, 27(2), 147-162.
- Setzer, J., Byrnes, R. (2019). Global trends in climate change litigation: 2019 snapshot. Policy report. URL: www.lse.ac.uk/GranthamInstitute.
- Shafik, N., Bandyopadhyay, S. (1992). Economic growth and environmental quality: time series and cross-country evidence. World Bank Policy Research Working Paper, 904.
- Simionescu, M., Albu, L. L., Raileanu Szeles, M., & Bilan, Y. (2017). The impact of biofuels utilisation in transport on the sustainable development in the European Union. Technological and Economic Development of Economy, 23(4), 667-686.
- Stavins, R. (2006). Market-based environmental policies: what can we learn from U.S. experience (and related research)? Moving to markets in environmental regulation. Oxford University Press.
- Stern, D.I. (2004). Rise and fall of the environmental Kuznets curve. World Development, 32(8), 1419-1439.
- The Global Competitiveness Report (2007-2017). URL: https://www.weforum.org/reports/the-global-competitiveness-report-2017-2018.
- The Travel & Tourism Competitiveness Report (2017). URL: https://www.weforum.org/reports/the-travel-tourism-competitiveness-report-2017.
- Unruh, G.C., Moomaw, W.R. (1998). An alternative analysis of apparent EKC-type transitions. Ecological Economics, 25(2), 221-229.
- Wang, K.M. (2013). The relationship between carbon dioxide emissions and economic growth: quantile panel-type analysis. Quality & Quantity, 47(3), 1337-1366.
- Ward, B., Dubos, R. (1972). Only one earth: the care and maintenance of a small planet. United Nations Conference on the Human Environment: Stockholm, Sweden.