Environmental policy impacts of trade with China and the moderating effect of governance

    Research output: Contribution to journalArticle

    Abstract

    Over the past decade, China has become one of the largest trading partners to countries of Latin America and Sub-Saharan Africa. A major concern is environmental degradation: much of this trade is composed of pollution-intensive raw materials and Chinese traders do not promote the adoption of stringent environmental policies among trade partners, as the United States and the European Union do. The probable outcome for China's trade partners is a race to the bottom, whereby trade-based competitive pressures lead governments to systematically weaken environmental regulations. However, this outcome may be moderated by good governance, as willing and able governments react to heightened pollution-intensive trade with China by strengthening policies. This study considers whether sound governing institutions offset the harmful effects of trade with China on environmental policy outcomes, using a dataset covering 58 Latin American and Sub-Saharan African countries over 10 years (2001–2010). Tests focus on the moderating effects of two facets of good governance: representativeness and bureaucratic capacity. The results demonstrate that trade with China does generate a race to the bottom in the environmental policies of partner countries. This effect is moderated by bureaucratic capacity, but not by representativeness.

    Original languageEnglish (US)
    Pages (from-to)395-405
    Number of pages11
    JournalEnvironmental Policy and Governance
    Volume28
    Issue number6
    DOIs
    StatePublished - Nov 1 2018

    Fingerprint

    environmental policy
    governance
    China
    good governance
    environmental damage
    raw materials
    pollution
    Latin America
    environmental degradation
    effect
    regulation
    European Union

    Keywords

    • bureaucratic capacity
    • China
    • environmental policy
    • governance
    • trade

    ASJC Scopus subject areas

    • Geography, Planning and Development
    • Management, Monitoring, Policy and Law

    Cite this

    Environmental policy impacts of trade with China and the moderating effect of governance. / Gamso, Jonas.

    In: Environmental Policy and Governance, Vol. 28, No. 6, 01.11.2018, p. 395-405.

    Research output: Contribution to journalArticle

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