Publication

Abstract : This chapter tests the impact of institutional quality on environmental performance in two ways: (i) it uses multidimensional (composite) indicators of environmental performance capturing effects on human health (EH) and on nature’s ecosystem vitality (EV) as against unidimensional indicators; and (ii) it attempts to relate performance to exogenous factors such as economic diversification and growth goals. We find that the institutional framework in small island developing states (SIDS) seems more geared towards protection of EH while neglecting widespread harm to EV. Moreover, EH performance in SIDS does not generally conflict with economic growth objectives or with industrial and tourism expansion. In non-SIDS, however, pronounced trade-offs between EH targets and industry as well as agriculture would imply lobbying activities, rendering regulatory institutions less effective. What emerges significantly is the critical status of EV in SIDS, which can be attributed to over-reliance on tourism as the driver of economic growth and proactive domestic and foreign tourism lobbies.