In the previous two chapters I explored how domestic and international factors might affect environmental quality in developing countries, treating these factors as independent from each other. However, it is very well conceivable that international economic factors, such as FDI inflows or trade, work differently in varying political contexts.1 In this chapter, I therefore focus on the interaction effects between foreign direct investment and trade on the one hand, and domestic politics on the other, thus taking the potentially mediating role of the political system into account.