Cultural Persistence in Corruption, Economic Growth, and the Environment
Evidence that attributes current environmental outcomes to historical and cultural origins has gained momentum in recent years. In this study, I construct a model to demonstrate why the relation between economic growth and environmental quality hinges on the deeply rooted cultural traits that govern attitudes towards corruption. Specifically, I show that the cultural transmission of the traits that determine the corruptibility of public officials, who are entrusted with the inspection and reporting of firms’ emissions, leads to history-dependant outcomes. It sets in motion either a vicious circle of corruption, high pollution and low economic growth, or a virtuous circle where corruption does not infringe environmental policy, pollution is lower and economic growth is higher. These outcomes have major policy implications.
History
Author affiliation
School of Business, University of LeicesterVersion
- VoR (Version of Record)