HISTORICAL ASPECTS OF THE ECONOMIC FOUNDATIONS OF CONTEMPORARY ENVIRONMENTAL LAW
DOI:
https://doi.org/10.18623/rvd.v23.n1.4143Palabras clave:
Environmental Law, Law and Economics, Market Failure, Externalities, Public Goods, Common-Pool Resources, Pigouvian InstrumentsResumen
Contemporary environmental law is deeply embedded in economic theory, particularly in the analysis of market failures, welfare optimization, and institutional design. This study examines the economic foundations of environmental law through a theoretical and analytical framework grounded in the law-and-economics tradition and institutional economics. Rather than relying on empirical data or econometric estimation, the paper adopts a conceptual approach that classifies environmental problems according to well-established categories of market failure, including negative externalities, public goods, common-pool resources, and non-market values. Building on this classification, the study evaluates the principal regulatory instruments of environmental law—command-and-control regulation, Pigouvian taxes, tradable permit systems, subsidies, and deposit-refund schemes—by examining their theoretical efficiency, incentive structures, distributional implications, and dynamic effects on innovation. Particular attention is devoted to the role of institutions and governance, emphasizing property-rights allocation, regulatory credibility, and policy stability as critical determinants of regulatory effectiveness. The analysis is complemented by conceptual visual frameworks that synthesize the alignment between economic problem structures and legal instruments. The research argues that environmental law is best understood as a hybrid system in which economic logic, legal normativity, and institutional constraints interact. Its contribution lies in offering a coherent conceptual framework that integrates economic reasoning into environmental legal analysis, thereby providing a foundation for future empirical research and policy evaluation.
Citas
Aruga, K. (2022). Economic Instrument and Environmental Problems. Environmental and Natural Resource Economics. https://doi.org/10.1007/978-3-030-95077-4_2
Atkinson, G., Groom, B., Hanley, N., & Mourato, S. (2018). Environmental Valuation and Benefit-Cost Analysis in U.K. Policy. Journal of Benefit-Cost Analysis, 9, 97–119. https://doi.org/10.1017/bca.2018.6
Bateman, I., & Kling, C. (2020). Revealed Preference Methods for Nonmarket Valuation: An Introduction to Best Practices. Review of Environmental Economics and Policy, 14, 240–259. https://doi.org/10.1093/reep/reaa009
Bertarelli, S., & Lodi, C. (2019). Heterogeneous firms, exports and pigouvian pollution tax: Does the abatement technology matter? Journal of Cleaner Production. https://doi.org/10.1016/j.jclepro.2019.04.340
Cain, L., Hernández-Cortés, D., Timmins, C., & Weber, P. (2024). Recent Findings and Methodologies in Economics Research in Environmental Justice. Review of Environmental Economics and Policy, 18, 116–142. https://doi.org/10.1086/728100
Cao, Y., Lin, S., Li, M., Shan, Y., & Wang, P. (2024). Green Taxes: Productivity Effects of Tax-Based Environmental Regulations on Heavily Polluting Firms. Economic Modelling. https://doi.org/10.1016/j.econmod.2024.106834
Challoumis, C. (2019). The R.B.Q. (Rational, Behavioral and Quantified) Model. Ekonomika, 98(1), 6–18. https://doi.org/10.15388/ekon.2019.1.1
Challoumis, C. (2023). FROM SAVINGS TO ESCAPE AND ENFORCEMENT SAVINGS. Cogito, XV(4), 206–216.
Challoumis, C. (2024a). From Economics to Economic Engineering (The Cycle of Money): The case of Romania. Cogito, XVII(2), 161–170.
Challoumis, C. (2024b). The Index of the Cycle of Money: The Case of Switzerland. Journal of Risk and Financial Management, 17(4), 1–24. https://doi.org/https://doi.org/10.3390/jrfm17040135
Challoumis, C. (2025a). Economocracy: Global Economic Governance. Economies, 13(8), 230. https://doi.org/10.3390/economies13080230
Challoumis, C. (2025b). QUANTIFICATION OF EVERYTHING METHOD IN ECONOMICS. INDeCS, 23(4), 323–339. https://www.indecs.eu/2025/indecs2025-pp323-339.pdf
Challoumis, C., & Eriotis, N. (2025). The Impact of Artificial Intelligence on the Greek Economy. Journal of Open Innovation: Technology, Market, and Complexity, 11(3), 1–13. https://doi.org/https://doi.org/10.1016/j.joitmc.2025.100578.
Challoumis, C., Eriotis, N., & Dimitrios, V. (2025). The Role of Pressure Groups in Greek Economic Structure. World, 6(4), 150. https://doi.org/https://doi.org/10.3390/world6040150
Challoumis, C., Eriotis, N., & Vasiliou, D. (2025). Social Movements’ Impact on the Greek Economy During the Financial Crisis. Economies, 13(9), 269. https://doi.org/https://doi.org/10.3390/economies13090269
Clare, B., Walter, E., & Harold, E. (2019). Free market for the environment. Economic Policy. https://doi.org/10.18288/1994-5124-2019-1-116-125
Dechezleprêtre, A., & Sato, M. (2017). The Impacts of Environmental Regulations on Competitiveness. Review of Environmental Economics and Policy, 11, 183–206. https://doi.org/10.1093/reep/rex013
Drupp, M., Meya, J., Baumgärtner, S., & Quaas, M. (2017). Economic Inequality and the Value of Nature. PSN: Income Inequality (Topic). https://doi.org/10.2139/ssrn.3074570
Duffield, J. (1997). NONMARKET VALUATION AND THE COURTS: THE CASE OF THE EXXON VALDEZ. Contemporary Economic Policy, 15, 98–110. https://doi.org/10.1111/j.1465-7287.1997.tb00493.x
Eubanks, L., & Furton, G. (2024). The institutional structure of pollution: large-scale externalities and the common law. Public Choice, 201, 429–450. https://doi.org/10.1007/s11127-024-01172-2
Gkargkavouzi, A., & Halkos, G. (2024). The Psychology of Non-Market Environmental Valuation: An integrative review of research evidence, theoretical insights, and policy considerations. Journal of Environmental Psychology. https://doi.org/10.1016/j.jenvp.2024.102510
Guijarro, F., & Tsinaslanidis, P. (2020). Analysis of Academic Literature on Environmental Valuation. International Journal of Environmental Research and Public Health, 17. https://doi.org/10.3390/ijerph17072386
Guo, M., Wang, H., & Kuai, Y. (2022). Environmental Policy and Green Innovation: Evidence from Heavily Polluting Firms in China. Finance Research Letters. https://doi.org/10.1016/j.frl.2022.103624
Guo, Y., Xia, X., Zhang, S., & Zhang, D.-N. (2018). Environmental Regulation, Government R&D Funding and Green Technology Innovation: Evidence from China Provincial Data. Sustainability, 10, 1–21. https://doi.org/10.3390/su10040940
Halkos, G., & Aslanidis, P.-S. (2025). The Socio‐Cultural and Spiritual Dimensions on Non‐Marketed Environmental Valuation. Sustainable Development. https://doi.org/10.1002/sd.70178
Jiang, J., Zhang, Q.-H., & Hui, Y. (2023). The Impact of Market and Non-Market-Based Environmental Policy Instruments on Firms’ Sustainable Technological Innovation: Evidence from Chinese Firms. Sustainability. https://doi.org/10.3390/su15054425
Jiang, Z., Xu, C., & Zhou, J. (2022). Government environmental protection subsidies, environmental tax collection, and green innovation: evidence from listed enterprises in China. Environmental Science and Pollution Research, 30, 4627–4641. https://doi.org/10.1007/s11356-022-22538-3
Joo, H.-Y., Seo, Y., & Min, H. (2018). Examining the effects of government intervention on the firm’s environmental and technological innovation capabilities and export performance. International Journal of Production Research, 56, 6090–6111. https://doi.org/10.1080/00207543.2018.1430902
Knapp, D., Bayrle-Kelso, N., Nigg-Stock, A., & Brecht, L. (2025). The Impact of Governmental Regulations and Environmental Activities on Innovation Efficiency. Sustainability. https://doi.org/10.3390/su17020467
Li, M., & Gao, X. (2022). Implementation of enterprises’ green technology innovation under market-based environmental regulation: An evolutionary game approach. Journal of Environmental Management, 308, 114570. https://doi.org/10.1016/j.jenvman.2022.114570
Li, X., Li, M., & Zeng, H. (2024). Environmental judicial reform and corporate investment behavior - Based on a quasi-natural experiment of environmental courts. Journal of Environmental Management, 365, 121640. https://doi.org/10.1016/j.jenvman.2024.121640
Libecap, G. (2009). The Tragedy of the Commons: Property Rights and Markets as Solutions to Resource and Environmental Problems. Environmental Economics. https://doi.org/10.1111/j.1467-8489.2007.00425.x
Maloney, M., & McCormick, R. (1982). A Positive Theory of Environmental Quality Regulation. The Journal of Law and Economics, 25, 99–123. https://doi.org/10.1086/467009
Mazzucato, M. (2023). Governing the economics of the common good: from correcting market failures to shaping collective goals. Journal of Economic Policy Reform, 27, 1–24. https://doi.org/10.1080/17487870.2023.2280969
Mbanyele, W., & Wang, F. (2021). Environmental regulation and technological innovation: evidence from China. Environmental Science and Pollution Research, 29, 12890–12910. https://doi.org/10.1007/s11356-021-14975-3
McCay, B., & Jentoft, S. (1998). Market or Community Failure? Critical Perspectives on Common Property Research. Human Organization, 57, 21–29. https://doi.org/10.17730/humo.57.1.372712415k227u25
Michael, F. (2021). Part II Analytical Approaches, Ch.10 Economics. The Oxford Handbook of International Environmental Law. https://doi.org/10.1093/law/9780198849155.003.0010
Nadić, D. (2021). Understanding the public and common good in the contemporary environmental policy. Socioloski Pregled. https://doi.org/10.5937/socpreg55-35441
Newbold, S., & Johnston, R. (2020). Valuing non-market valuation studies using meta-analysis: A demonstration using estimates of willingness-to-pay for water quality improvements. Journal of Environmental Economics and Management, 104, 102379. https://doi.org/10.1016/j.jeem.2020.102379
Noga, A. (2024). Market Solution to Environmental Tragedy with Coasean Bargaining, Commons in the Form of Common Property, and International Human Rights Law. Groningen Journal of International Law. https://doi.org/10.21827/grojil.11.2.230-255
Olukolajo, M., Oyetunji, A., & Amaechi, C. (2023). A Scientometric Review of Environmental Valuation Research with an Altmetric Pathway for the Future. Environments. https://doi.org/10.3390/environments10040058
Ouyang, X., Li, Q., & Du, K. (2020). How does environmental regulation promote technological innovations in the industrial sector? Evidence from Chinese provincial panel data. Energy Policy. https://doi.org/10.1016/j.enpol.2020.111310
Perrings, C. (2021). Environmental Externalities. Conservation. https://doi.org/10.1093/oso/9780190613600.003.0009
Petrolia, D., Guignet, D., Whitehead, J., Kent, C., Caulder, C., & Amon, K. (2020). Nonmarket Valuation in the Environmental Protection Agency’s Regulatory Process. Applied Economic Perspectives and Policy. https://doi.org/10.1002/aepp.13106
Pouw, N., Weikard, H., & Howarth, R. (2022). Economic analysis of international environmental agreements: lessons learnt 2000–2020. International Environmental Agreements: Politics, Law and Economics, 22, 279–294. https://doi.org/10.1007/s10784-022-09576-5
Qiu, L., Hu, D., & Wang, Y. (2020). How do firms achieve sustainability through green innovation under external pressures of environmental regulation and market turbulence? Business Strategy and the Environment. https://doi.org/10.1002/bse.2530
Rahim, N., Othman, J., Salleh, N., & Chamhuri, N. (2021). A Non-Market Valuation Approach to Environmental Cost-Benefit Analysis for Sanitary Landfill Project Appraisal. Sustainability. https://doi.org/10.3390/su13147718
Reinhardt, F. (1999). Market Failure and the Environmental Policies of Firms: Economic Rationales for “Beyond Compliance” Behavior. Journal of Industrial Ecology, 3. https://doi.org/10.1162/108819899569368
Reynolds, J. (2019). An economic analysis of international environmental rights. International Environmental Agreements: Politics, Law and Economics, 19, 557–575. https://doi.org/10.1007/s10784-019-09454-7
Rogers, A., Kragt, M., Gibson, F., Burton, M., Petersen, E., & Pannell, D. (2015). Non‐Market Valuation: Usage and Impacts in Environmental Policy and Management in Australia. Agricultural & Natural Resource Economics EJournal. https://doi.org/10.1111/1467-8489.12031
Sagoff, M. (1981). Economic Theory and Environmental Law. Michigan Law Review, 79, 1393–1420. https://doi.org/10.2307/1288102
Senatore, L., Bimonte, G., & Gatto, A. (2025). Sustainable and Resilient Governance of Common‐Pool Resources: A Critical Analysis of Non‐Cooperative and Cooperative Game Theory Applications. Journal of Economic Surveys. https://doi.org/10.1111/joes.12690
Shamshiyev, O. (2023). A Theoretical Study on Negative Externalities and the Free-Rider Problem in Natural Resource Management from Islamic Law Perspective. İslam Ekonomisi ve Finansı Dergisi (İEFD). https://doi.org/10.54863/jief.1381347
Shao, S., Hu, Z., Cao, J., Yang, L., & Guan, D. (2020). Environmental Regulation and Enterprise Innovation: A Review. Business Strategy and the Environment. https://doi.org/10.1002/bse.2446
Smith, V. (1993). Nonmarket valuation of environmental resources: an interpretive appraisal. Land Economics, 69, 1–26. https://doi.org/10.2307/3146275
Yang, Q., Liu, G., Casazza, M., Campbell, E., Giannetti, B., & Brown, M. (2018). Development of a new framework for non-monetary accounting on ecosystem services valuation. Ecosystem Services. https://doi.org/10.1016/j.ecoser.2018.09.006
Zapata, E. M. J. (2025). Environmental externalities, from an economic perspective. Environmental Research and Ecotoxicity. https://doi.org/10.56294/ere2025181
Zhang, J., Kang, L., Li, H., Ballesteros-Pérez, P., Skitmore, M., & Zuo, J. (2020). The impact of environmental regulations on urban Green innovation efficiency: The case of Xi’an. Sustainable Cities and Society. https://doi.org/10.1016/j.scs.2020.102123
Zhang, Y., Hu, H., Zhu, G., & You, D.-M. (2022). The impact of environmental regulation on enterprises’ green innovation under the constraint of external financing: evidence from China’s industrial firms. Environmental Science and Pollution Research, 30, 42943–42964. https://doi.org/10.1007/s11356-022-18712-2
Zhao, A., Zhang, H., Liu, Y., & Guan, H. (2024). Environmental taxes, technological innovation and firm performance: Evidence from China’s manufacturing firms. Heliyon, 10. https://doi.org/10.1016/j.heliyon.2024.e31386
Zheng, Q., Li, J., & Duan, X. (2023). The Impact of Environmental Tax and R&D Tax Incentives on Green Innovation. Sustainability. https://doi.org/10.3390/su15097303
Zhou, P., Song, F., & Huang, X. (2023). Environmental regulations and firms’ green innovations: Transforming pressure into incentives. International Review of Financial Analysis. https://doi.org/10.1016/j.irfa.2023.102504
Zhou, Y., & Su, Q. (2025). Environmental Protection Tax, Management Efficiency, and Enterprise Green Technology Innovation. Finance Research Letters. https://doi.org/10.1016/j.frl.2025.106860
Descargas
Publicado
Cómo citar
Número
Sección
Licencia
I (we) submit this article which is original and unpublished, of my (our) own authorship, to the evaluation of the Veredas do Direito Journal, and agree that the related copyrights will become exclusive property of the Journal, being prohibited any partial or total copy in any other part or other printed or online communication vehicle dissociated from the Veredas do Direito Journal, without the necessary and prior authorization that should be requested in writing to Editor in Chief. I (we) also declare that there is no conflict of interest between the articles theme, the author (s) and enterprises, institutions or individuals.
I (we) recognize that the Veredas do Direito Journal is licensed under a CREATIVE COMMONS LICENSE.
Licença Creative Commons Attribution 3.0
