HBR Insights Future of Business Boxed Set (8 Books)

 

2

WHEN ENVIRONMENTAL REGULATIONS ARE TIGHTER AT HOME, COMPANIES EMIT MORE ABROAD

by Itzhak (Zahi) Ben-David, Stefanie Kleimeier, and Michael Viehs

If we want to avoid the most damaging effects of climate change, countries need to work together to limit pollution and keep global warming to under 1.5°C. But countries differ in their approaches toward environmental regulation. Some are trying to reduce carbon dioxide (CO₂) emissions by enforcing strict environmental policies. Others are considering withdrawing from the Paris Agreement designed to collectively combat climate change—or already have.

This gap makes a difference. Our research finds that global emission levels are lower for countries with tighter domestic environmental regulations. ...