The Impact of Environmental Regulation on the Investment Climate

Authors

DOI:

https://doi.org/10.17159/1727-3781/2023/v26i0a16378

Keywords:

Environmental regulation, investment, World Bank, federalism, competition, environmental quality, centralisation, race-to-the-bottom, race-to-the-top

Abstract

In this contribution to honour Willemien du Plessis we use the economic approach to law to explain how environmental law affects economic development and vice-versa. The contribution starts by presenting the Environmental Kuznets Curve that makes clear that environmental regulation should not retard economic development but that, on the contrary, environmental protection and economic growth can go hand-in-hand, provided there is environmental regulation. The contribution further discusses the idea of competition between legal orders and how this affects environmental law, and to this end both the race to the bottom as well as the race-to-the-top are discussed. Finally, attention is paid to the role of environmental law in economic development.

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Author Biography

  • Michael Faure, Maastricht University

    professor of comparative and international environmental law, Maastricht University and professor of comparative private law and economics, Erasmus School of Law, Rotterdam, both in the Netherlands

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Published

23-11-2023

Issue

Section

Special Edition: Environmental & Energy Law

How to Cite

Faure, M. (2023). The Impact of Environmental Regulation on the Investment Climate. Potchefstroom Electronic Law Journal, 26, (Published on 23 November 2023) pp 1 - 31. https://doi.org/10.17159/1727-3781/2023/v26i0a16378

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