Environmental regulation and economic integration

This article explores the relationship between economic integration and environmental regulation. It begins by observing that fears that economic competition would lead to a regulatory 'race toward the bottom' appear to have proven unwarranted: increased economic integration has proven compatible with the general strengthening of environmental standards. It then explains why economic interdependence has not led sub-national, national, and regional governments to compete by lowering their environmental standards. The article then explores various mechanisms by which economic integration has contributed to the strengthening of regulatory standards. It concludes by discussing the shortcomings of existing mechanisms of global environmental governance and specifying the circumstances under which regulatory coordination can promote more effective environmental governance.