Environmental Policy under Weak Institutions

Developing countries are facing mounting pressures to incorporate environmental concerns into their policy reform agendas. This paper finds that common environmental policies, such as levying taxes to reduce the excessive exploitation of natural assets, can be self-defeating when (i) institutions ar...

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Bibliographic Details
Main Author: Karayalcin, Cem
Other Authors: Onder, Harun
Format: eBook
Language:English
Published: Washington, D.C The World Bank 2024
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Online Access:
Collection: World Bank E-Library Archive - Collection details see MPG.ReNa
Description
Summary:Developing countries are facing mounting pressures to incorporate environmental concerns into their policy reform agendas. This paper finds that common environmental policies, such as levying taxes to reduce the excessive exploitation of natural assets, can be self-defeating when (i) institutions are weak and (ii) the general equilibrium effects of such policy actions are overlooked. This seemingly paradoxical result is driven by fundamental mechanisms in structural transformation frameworks, without the need for strong assumptions. It also carries a clear policy implication: environmental policies should be considered within a country's broader development context, rather than in isolation
Physical Description:20 pages