Climate Change Legislations and Environmental Degradation

This study investigates how the enactment of regulations and laws dealing with climate change influences CO2 emissions. Using a sample of 83 countries and covering the period from 2003 to 2014, our dynamic panel analysis yields two major results. First, the enactment of new climate change regulations (i.e., amendments, decrees, orders) associated with a strong rule of law significantly diminishes CO2 emissions. This result validates the hypothesis of Gunningham (J Environ Law 23:169-201, 2011. 10.1093/jel/eqr006), which argues that the efficiency of environmental legislation must be supported by regulatory institutions that can efficiently enforce the law. Second, the enactment of new climate change laws seems to not impact emissions levels independently of institutional quality. It may be possible that private agents anticipate the entry into force of the new law(s) and must consequently adapt to the requirements of such laws, leading to a nonsignificant impact on CO2 emissions.