Legal Families and Environmental Protection: Is there a Causal Relationship?

DiVita, Giuseppe

doi:10.2139/ssrn.987966

Cited by 5 publications

(8 citation statements)

References 57 publications

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“…Furthermore, as Grossman and Krueger (1995) mentioned, proper environmental policies play a fundamental role in the inversion of the trajectory of pollutants that follow the EKC hypothesis. Therefore, it is important to include as part of the control variables an indicator of the institutional quality (Bhattarai and Hammig, 2001;Culas, 2007;Di Vita, 2007;Mazzanti et al, 2009a,b;Arbulú, 2012). For this purpose, the government effectiveness indicator (GOVEFF) was chosen.…”

Section: Methodsmentioning

confidence: 99%

Tourism and solid waste generation in Europe: A panel data assessment of the Environmental Kuznets Curve

2015

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Section: Methodsmentioning

confidence: 99%

Tourism and solid waste generation in Europe: A panel data assessment of the Environmental Kuznets Curve

2015

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“…Di Vita () as well as Zhu and colleagues () put forward that a country's economic conditions determine environmental responsibility and activities. For example, the environmental Kuznets curve describes a U‐shaped relation between the gross domestic product (GDP) per capita and the intensity of environmental emissions (Dinda ).…”

Section: Regional Differencesmentioning

confidence: 99%

“…Further, different law systems may also affect the environmental performance attributed to varying shareholder protection. By encouraging financial investments, effective stakeholder protection in common law countries increases the growth of the income per capita and lowers the cost of environmental activities through reduced interest rates and discount rates (Di Vita ). Hypothesis 1 : Regional differences explain variation in the reported estimates for the CEP‐CFP relation. …”

Section: Regional Differencesmentioning

confidence: 99%

Economic Development Matters: A Meta‐Regression Analysis on the Relation between Environmental Management and Financial Performance

Hang

Geyer‐Klingeberg

Rathgeber

et al. 2017

J of Industrial Ecology

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Although the existing body of empirical literature on the relation between corporate environmental performance (CEP) and corporate financial performance (CFP) is continuously growing, results are still inconclusive about this fundamental question in industrial ecology. Comparisons are difficult because of various estimation methods as well as the overall heterogeneous and complex interaction between the two constructs, but especially because of country-specific data sets. Consequently, we raise the question of whether regional differences are the driving force buried underneath the inconclusiveness. Therefore, the aim of this article is to explore this heterogeneity by aggregating 893 existing results from 142 empirical primary studies that are based on more than 750,000 firm-year observations. Our findings suggest a convex impact of a country's economic development on the magnitude of the CEP-CFP effect (i.e., the effect is positive in developing countries, disappears in emerging countries, and is again positive in highly developed countries). We also find that the overall positive relation strengthens for market-based CFP measures and diminishes for countries with civil law systems, firms from the service sector, reactive environmental activities, and process-based CEP measures. Further, several aspects of the examined data sample and the inclusion of relevant control variables explain heterogeneity in previous research results. Keywords:corporate environmental performance (CEP) corporate financial performance (CFP) heterogeneity industrial ecology meta-analysis moderating effectsSupporting information is linked to this article on the JIE website Over the past 40 years, hundreds of studies have found evidence for a positive relationship between corporate environmental performance (CEP) and corporate financial performance (CFP). However, empirical results largely vary because of differences in their variable measures, sample compositions, Conflict of interest statement:The authors have no conflict to declare.

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“…For example, corruption has been shown to have a negative effect on environmental quality, undermining the effectiveness of environmental policies [3,11,12]. In contrast, strong institutions in the form of political liberties, civil rights, and democracy positively contribute to environmental quality [13], as have secure property rights [4] and legal protection [14]. Reinforcement of the rule of law is found to reduce the degree of environmental damage and to enhance the application of sustainable policies [15,16].…”

Section: Related Literaturementioning

confidence: 99%

Environment and economic growth: is the rule of law the go-between? The case of high-income countries

2015

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Background: The links between pollution, institutions, and economic growth may be not so univocal as argued in the literature, as these factors may influence each other since some reverse causality may exist between them. The understanding of this relationship is important for identifying appropriate policies for sustainable development. Methods: We investigate the long-run relationship between pollution, institutions, and economic growth, considering as variables carbon dioxide emissions, rule of law, and income. The model offers an analysis of causality direction using a panel-VAR approach for the period 1996-2010 for 33 high-income countries that include advanced, emerging, and former-transition economies.Results: The results demonstrate a positive reverse causality relationship between the rule of law and income, indicating that higher income implies stronger rule of law and vice versa. The rule of law is found to have a negative relationship with pollution, confirming that the enforcement of rules is "a conditio sine qua non" to control emissions. No causality relationship is found for pollution and income that can be due to the different stages of economic development of emerging, former-transition, and developed economies, implying heterogeneity in their environmental protection policies. Conclusions: We argue that the rule of law matters both for economic growth and environment, working as a go-between and creating a win-win situation, where stronger institutions increase the levels of income and vice versa. In order to enhance sustainable development, a policy maker should allocate additional resources for both monitoring the application of the rule of law and its enforcement.

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Legal Families and Environmental Protection: Is there a Causal Relationship?

Cited by 5 publications

References 57 publications

Tourism and solid waste generation in Europe: A panel data assessment of the Environmental Kuznets Curve

Tourism and solid waste generation in Europe: A panel data assessment of the Environmental Kuznets Curve

Economic Development Matters: A Meta‐Regression Analysis on the Relation between Environmental Management and Financial Performance

Environment and economic growth: is the rule of law the go-between? The case of high-income countries

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