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Does an early start help or hurt? Statehood, institutions and modern climate change policies

James B. Ang and Per Fredriksson ()

Energy Economics, 2021, vol. 94, issue C

Abstract: This paper first hypothesizes that countries that have accumulated more statehood experience over the last two millennia tend to have more stringent climate change policies. A second hypothesis is that there are also indirect effects via the rule of law, democracy, corruption, political instability, regulatory quality, and government effectiveness. Our empirical evidence provides support for these hypotheses. An early start helps both directly and indirectly. The strongest indirect effects occur through government effectiveness, rule of law, and corruption. Climate change policy analysis may take these findings into account and incorporate state capacity building and bureaucratic and legal reforms into the design of international environmental agreements. However, the effects are unlikely to arrive quickly.

Keywords: Climate change policy; Environment; State antiquity; State capacity; Institutions; Government effectiveness; Rule of law; Corruption (search for similar items in EconPapers)
JEL-codes: K23 O44 Q58 (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1016/j.eneco.2020.105075

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Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant

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