Governance quality and environmental policy on emergent, resource-rich economies: The case of Brazil

Abstract

In this paper we analyze the role of governance quality on environmental policy in Brazil regarding natural resources exploration, particularly oil. Governance quality is reflected in five indicators following the approach of the World Bank: political stability, regulatory quality, government effectiveness, rule of law, and control of corruption. We highlight the main governance challenges faced by this country which can hinder environmental policy, particularly when they can influence oil exploration. The first problem detected is the political interference on environmental management. As governments change, so do environmental priorities, which raises immense costs. The second problem is that, despite the good environmental regulation, its effective implementation is hard. This happens due to low government effectiveness levels. Finally, the lack of political independence of environmental agencies increases the risk of corruption. Hence, it appears necessary for Brazil to carry out a self-assessment of its environmental policy and trace independent paths for technical and political resources management. Notwithstanding, we did not find an evident connection between the fluctuations in the governance indicators and data on oil production and CO2 emissions.