ABSTRACT
This chapter presents a transnational analysis of the political climate of environmental policy and the processes of dialogue involved in environmental regulation. It provides an insight into why environmental regulations have been a source of conflict in some countries and not in others; why they are sometimes associated with costs and burdens, and at other times with technical progress and innovation. The chapter discusses the role of the state-industry relationship in influencing corporate strategy, specifically the decision to pursue innovation. It explains the distinctions between political climates, and examines the forces responsible for their evolution. The chapter suggests that comparison of the countries that creating the stable, trusting political climate is the first stage in harnessing innovation to meeting environmental objectives. The lessens the incentive for industry to make political or legal challenges to environmental policy and, over time, the lack of such challenges builds up the credibility of environmental policy and further enhances its independence from industrial interests.
