Regulating the Polluters

Climate change, tropical deforestation, biodiversity loss, ozone depletion, hazardous wastes, and ocean pollution are among the environmental issues that have bought national governments together in a common purpose. As they have worked to mitigate these global problems, national governments have developed a wide variety of environmental regime designs. They have created complex systems of global rules and institutions to enable and incentivize private and public actors to meet the challenges posed by global pollution. Why have national governments created different international rules and institutions to address global environmental issues? This book demonstrates that national governments have developed different institutional responses to global issues because the markets producing environmental pollution impose varying constraints and create varying opportunities for change. The nature and scale of those constraints and opportunities depend on the capital resources and industrial concentrations of producers and the demand characteristics of consumers in the markets that governments seek to regulate. Global institutions are designed to match the basic elements of the markets producing global environmental pollution. In global governance, not only are oligopolistic businesses politically influential in shaping policy outcomes, but they are also efficient implementers of environmental regulation. They face a double-edged sword arising from their wealth and market concentrations. Although they are able to shape regulatory policy, these powerful businesses are targeted for stringent global regulation. The sources of their political influence make them the best options for mitigating global pollution.