Environmental regulation, taxes, and activism

Social activism is a burgeoning human response to pressing problems around the world, and nowhere is this response more apparent than in the ongoing global push back against environmental externalities. In this paper, we explore – for the first time – whether there are degrees of activism that relate to degrees of regulatory stringency. Using data on environmental conflicts resulting from fossil fuel production across 68 countries over the period 1995-2014, we find that, for a given tax rate, a move from a lax to more stringent regime lowers the rate of environmental conflicts. These findings underscore the contingent role of policy stringency as a trigger for intense social movements.