ENVIRONMENTAL SUSTAINABILITY VERSUS ECONOMIC INTERESTS: A SEARCH FOR GOOD GOVERNANCE IN A MACROECONOMIC PERSPECTIVE

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Abstract

Finding the proper balance between economic benefit and sustainable development has been an issue for many local governments, especially in the regions that depend strongly on natural resources. One of Canada’s largest contributors to environmental degradation is the oil sands in Alberta. The degradation occurs on land, in water, and in the air as a result of oil extraction and tailings ponds. The purpose of the paper is to argue that although the government of the province of Alberta and the federal government have developed legislation including licensing and policies (frameworks and directives) to reduce and prevent environmental degradation, they fail to ensure compliance with the legislation and policies because the governments prefer economic gain to environmental sustainability. The lack of strong compliance enforcement suggests a lack of effectiveness and efficiency. Subsequently, a failure in the rule of law occurs because oil corporations, due to their economic impact, are treated as above the law. The bias for the corporation over the environment hinders good governance. Overall, both governments find balancing protecting the environment and gaining financial benefits challenging.

Keywords: Governance, Government, Regulation, Environment, Oil Sands, Sustainability

Received: 04.09.2017

Accepted: 03.11.2017

How to cite this paper: Stecyk, K. (2017). Environmental sustainability versus economic interests: a search for good governance in a macroeconomic perspective. Journal of Governance & Regulation, 6(4), 7-16. https://doi.org/10.22495/jgr_v6_i4_p1