Stringent sustainability regulations for global supply chains are supported across middle-income democracies

Abstract

AbstractExpanded international trade and globalised production networks are increasing the environmental and social impacts in middle-income countries (GNI per capita $1,136-$13,845). High-income countries (>$13,845) are seeking to mitigate the negative impacts of domestic consumption by imposing new sustainability regulations on global supply chains. Recent evidence suggests that these regulations are broadly supported across high-income countries. However, it remains unclear whether citizens of middle-income countries support aligning domestic sustainability regulations with the measures developed by high-income countries. Concerns about economic competitiveness and foreign imposition could increase public resistance toward such alignment. Alternatively, desires for continued market access in high-income countries and aspirations for strengthening local environmental and labour regulations could foster support for alignment. Based on survey-embedded experiments in the three largest democratic non-OECD economies (Brazil, India, Indonesia), we find surprisingly strong support for domestic-based measures that are aligned with emerging global supply chain sustainability regulations. Our findings suggest that support is largely driven by positive impact expectations, where the future benefits of alignment are perceived as outweighing concerns about increased costs. These results bode well for initiatives to install stricter sustainability regulations for global supply chains that are acceptable not only in high-income economies but also in non-OECD countries.