Tuesday, August 1, 2017

Statehood experience, legal traditions, and climate change policies

Ang, J. B. and Fredriksson, P. G. (2017), Statehood experience, legal traditions, and climate change policies. Economic Inquiry, 55: 1511–1537. doi:10.1111/ecin.12441

Abstract: This study investigates how the implementation of modern climate change policies is related to former colonies' length of state history and their legal heritage. We argue that countries with longer statehood experience around the time of colonization were better equipped to implement the legal philosophies transplanted by their colonial powers. Therefore, the implications of receiving British common law versus French civil law should be particularly important in countries with a greater accumulated history of statehood. Using a cross-section of up to 78 former colonies, our results provide support for this hypothesis. In particular, our estimates demonstrate that common law countries have weaker modern climate change policies than civil law countries and the difference is inflated by a longer statehood experience, measured by the length of state history from 1 to 1800 AD. Legal origin has no effect in areas which, by the time of colonization, had no statehood experience. Finally, we report similar results for the pattern of labor market regulations. (JEL K15, K31, K32, O44, Q54, Q58)

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