Environmental Governance: The Aspect of Coordination*

Arild Vatn

in Global Environmental Commons

Published in print July 2012 | ISBN: 9780199656202
Published online September 2012 | e-ISBN: 9780191742149 | DOI:
Environmental Governance: The Aspect of Coordination*

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Human action is interlinked through the physical environment. Hence, a main challenge for environmental governance is to institutionally connect actions that are physically connected by necessity. This chapter asks if the core institutions of our economies are formed to handle this challenge well. In doing so the chapter first characterizes the types of coordination problems involved — simple coordination problems, complex coordination problems with specific interdependence, and complex coordination problems with generalized interdependence. In modern economies the latter dominates. While the basic structure of markets and firms is strong at facilitating economic expansion, it is weak at handling the interdependencies created. Certainly, state regulations have been issued to try to handle these challenges. Their ex post characteristics and their dependence on interest constellations established by the market make these regulations weak. The chapter discusses alternatives to the present regulations — e.g., ex ante regulations and increased role for state respective common property.

Keywords: governance; interdependency; resource regimes; ex ante regulations; ex post regulations; state property; common property

Chapter.  10253 words. 

Subjects: Economic Development and Growth

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