As the world celebrates the annual Earth Day for the 40th time today, there are many achievements to point to with greater environmental awareness among citizens and businesses alike, and new technologies that make economic growth much more environmentally friendly. When we look closer at how this progress has happened, though, it takes more than good will and technological advances to ensure responsible environmental stewardship. In the long run, respecting the environment requires proper institutions.
Key among them are clear and secure property rights. At the core of most environmental problems lies the tragedy of commons: the situation where ownership of natural resources is not clear and therefore creates incentives for pollution and overuse. But property rights do not exist in a vacuum; to be effective, they need the framework of governance that ensures transparency and accountability.
Many argue that some sort of global governance is the answer to environmental challenges going forward. Yet, while undoubtedly international agreements are important and necessary, to be meaningful, they must be rooted in local governance and institutions. The American Heritage Magazine described the establishment of the Earth Day as “one of the most remarkable happenings in the history of democracy.” To continue its mission, the Earth Day must strive to keep environmental issues as a part of daily democratic debate in countries around the world on civic engagement, corporate citizenship, and institutional reform.
Published Date: April 22, 2010