Globalization and Sustainability: De Jure and De Facto Approach

Abstract

AbstractThis chapter covers sustainability issues from the industrial development and international trade perspectives. Issues covered can be broadly regarded as Goal 12: “Ensure sustainable consumption and production patterns” but touches upon various goals. In pursuing the goal of sustainability in economic activities, the society can take two different approaches. One is based on laws (including international agreements), de jure approach. The other is based more on the market force, such as based on Voluntary Sustainability Standards (VSS), de facto approach. Within the de jure approach, the chapter will cover efforts at global level (international agreements) and efforts at domestic levels. At the international levels, the chapter introduces some of the key areas and the motivations behind these agreements. For the discussions on the domestic levels, the chapter introduces the differences between the production-based environmental regulations and the product-related environmental regulations, and how this has influenced the industrial activities and international trade. In the part for VSS, the chapter will focus mainly on private standards with third-party certification schemes and how these diffuse across countries through trade linkages and implications to producers especially in developing countries. Finally, the chapter touches upon the governance issues related to regulations and private standards.