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From Regulation to Transformation-Economic and Institutional Pathways of Environmental Policy
Abstract
The environmental policy has now become a strategy aimed at economic, financial and institutional change and not just another regulatory device. In this chapter, the authors discuss how environmental regulation, market-oriented instruments and co-ordinated policy frameworks redefine the structure of production, investment behavior, labour market, and governance structures. Treating the environmental policy as an endogenous factor, the analysis defines its impact on the dynamics of innovation, reallocation of capitals, and the structural economic change. Another crucial aspect highlighted in the chapter is the relevance of institutional quality and multi-level governance in the process of converting regulatory ambition into long term inclusive, and sustainable development outcomes.
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