Political-economic correlates of environmental policy

Abstract

Does globalization lead to environmental degradation? What is the role of democracy for environmental performance and do left-wing governments really care more about the environment? Using a comprehensive measure of environmental performance, we test these three hypotheses for a panel of 134 countries for the period 2007-2016. Our findings show that globalization leads to better environmental performances. Interestingly, this result is predominantly driven by social, not by economic or political globalization. Although we find evidence that left-wing governments perform better than right-wing governments, it is centrist governments that have the highest environmental performance. The political system, i.e. democracy, turns out insignificant in all specifications.