Economic freedom and environmental performance

Sammanfattning

In this chapter, the relationship between economic freedom and environmental performance is scrutinized. The analysis relies on comparing countries’ standing in the Environmental Performance Index (EPI) of the Yale Centre for Environmental Law & Policy with two indexes of economic freedom, one developed by the Fraser Institute (Economic Freedom of the World index), and the other by the Heritage Foundation (Index of Economic Freedom). Whether economic freedom is good or bad for the environment depends on how it affects incentives, productive efforts, and effective resource use. Greater economic freedom can both harm and help environmental performance. It is a complicated relationship, but high economic freedom generally goes hand in hand with high scores in the EPI.

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Working Paper No. 384 Vertical industrial policy: principles, practice and potential

Working paperPublikation

Jonas Grafström

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Publiceringsår

2025

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Ratio Working Paper Series.

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This report investigates the rationale, implementation challenges, and evolving global context of vertical industrial policy, with a particular focus on Sweden. Against the backdrop of recent global crises—including the 2008 financial crisis, the COVID-19 pandemic, and geopolitical disruptions following Russia’s invasion of Ukraine—the analysis explores how governments have re-evaluated the role of state intervention to bolster economic resilience and strategic autonomy. The report distinguishes between horizontal and vertical approaches, where vertical policy targets specific sectors or technologies considered critical for national development, such as green technology, semiconductors, and renewable energy. Drawing on economic theory and empirical evidence, the report outlines the key justifications for vertical industrial policy, including market failures, coordination problems, and the under-provision of public goods. It also addresses the limitations and risks associated with such policies, including information asymmetries, rent-seeking, and political capture. A central contribution is a decision-making framework designed to help policymakers assess when vertical industrial intervention may be justified and how it can be designed to minimize inefficiencies and unintended consequences. While the report takes a cautiously critical stance toward vertical industrial policy, it acknowledges its potential when implemented with clear objectives, regular evaluations, and institutional safeguards. The analysis highlights the need for a balanced and flexible approach, especially in the context of green transitions and geopolitical fragmentation.

Working Paper No. 383 Insider activism in the forest industry: An empirical public choice analysis

Working paperPublikation

Jonas Grafström & Nils Karlson

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Publiceringsår

2025

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Ratio Working Paper Series

Sammanfattning

Insider activism—where bureaucrats use discretionary power to advance own ideological goals—has significant implications for regulatory stability and property rights security. Using the Swedish forestry industry as a case study, the purpose of this study is to investigate if insider activism affects the Swedish forestry sector and how such possible regulatory uncertainty influences economic decision-making. Assembled survey data suggest that forest owners perceive regulatory enforcement as unpredictable, leading to defensive actions such as premature harvesting to preempt restrictive future regulations. To explain these patterns, we apply public choice theory and a game-theoretic approach, demonstrating how bureaucratic drift, regulatory ratcheting, and time-inconsistency problems contribute to persistent distortions in forestry policies. Policy wise, the findings emphasize the need for judicial review, regulatory impact assessments, and clearer legislative mandates to reduce enforcement uncertainty and improve institutional trust. This research advances discussions on bureaucratic incentives, regulatory capture, and legal certainty in environmental policy.

Decoding the barriers for a circular plastics industry: An equation framework

Artikel (med peer review)Publikation

Jonas Grafström

Publiceringsår

2025

Publicerat i

Sustainable Production and Consumption.

Sammanfattning

Empirical research on barriers to a circular plastics economy has predominantly relied on case study approaches. While research has provided insights into the conceptual and anecdotal aspects of these barriers, a gap remains in the application of formalized methodologies to systematically understand and address them. This paper seeks to bridge this gap by developing an equation system tailored to the plastics industry, bringing clarity to the complex interplay of factors that constitute barriers to a circular economy. The study identifies four primary barriers to the circular economy, as documented in the literature between 2017 and 2024: economic, institutional and regulatory, technological, and social. The results include 24 equations, synthesized into four master equations. A mathematical case study demonstrates how numerical weights, and the relative importance of variables can differ between countries, offering a practical guide for applying the framework across diverse contexts. The study concludes that reducing regulatory ambiguity, scaling recycling infrastructure, and fostering consumer trust in recycled materials are critical steps. However, each country will face unique challenges, requiring policymakers to adopt tailored approaches and variable weighting.

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Working Paper No. 384 Vertical industrial policy: principles, practice and potential

Working paperPublikation

Jonas Grafström

Ladda ner

Publiceringsår

2025

Publicerat i

Ratio Working Paper Series.

Sammanfattning

Working Paper No. 383 Insider activism in the forest industry: An empirical public choice analysis

Working paperPublikation

Jonas Grafström & Nils Karlson

Ladda ner

Publiceringsår

2025

Publicerat i

Ratio Working Paper Series

Sammanfattning

Decoding the barriers for a circular plastics industry: An equation framework

Artikel (med peer review)Publikation

Jonas Grafström

Publiceringsår

2025

Publicerat i

Sustainable Production and Consumption.

Sammanfattning

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Skill Requirements and Employment of Immigrants in Swedish Hospitality