Journal of International Business Studies
Sanjay Patnaik
Abstract
This study examines the outcome of collective political strategy across countries, within the context of new greenhouse gas regulations in the European Union. Drawing on the economic theory of regulation, I argue that collective political strategy can result in varied distortions of environmental policies, depending on the ideology of government actors, the electoral cycle and the type of prevalent bureaucratic regulatory system. An interesting finding in this regard is that left-leaning governments react more favorably to political strategies by industries. The study highlights the important role cross-country heterogeneity of political systems plays in influencing the outcomes of collective political strategies.