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The actual existence of this effect in the real world is disputed. While there is large discussion on the possible race to the bottom among countries competing for attention of internationally mobile capital, there seems to be some limited evidence that at least in some sectors the
California effect
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in which different countries (or states in the case of
Delaware) are reducing their regulatory burden to attract more of the businesses into their jurisdiction. The assumption behind the Delaware effect is that in the competitive regulatory environment, governments have to remove their regulatory
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is the shift of consumer, environmental and other regulations in the direction of political jurisdictions with stricter regulatory standards. The name is derived from the spread of some advanced environmental regulatory standards that were originally adopted by the U.S. state of
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While additional regulation can prove to be a burden for any corporation, higher regulatory standards can be a solution to certain
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barriers to allow easier functioning of their corporations and to attract new companies to establish their business.
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167:"Does the 'California effect' operate across borders? Trading- and investing-up in automobile emission standards"
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A Haas Book Review, Trading Up: Consumer and
Environmental Regulation in a Global Economy,
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and eventually adopted in other states. This process is the opposite of the
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Trading Up: Consumer and
Environmental regulation in a global economy
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http://www.haas.berkeley.edu/groups/pubs/books/vogel/Trading_Up.html
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who called this phenomenon the "California effect".
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47:which are decreasing the total public good.
165:Perkins, Richard; Neumayer, Eric (2012).
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50:This term is mostly associated with
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174:Journal of European Public Policy
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186:10.1080/13501763.2011.609725
132:. Harvard University Press.
16:Concept in political science
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216:Environment of California
99:Multinational corporation
69:Convergence (economics)
211:Politics of California
124:Vogel, David (1995).
37:race to the bottom
206:Environmental law
104:Supply and demand
58:can be observed.
21:California effect
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74:Global workforce
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180:(2): 217–237.
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52:David Vogel
200:Categories
111:References
89:Free trade
26:California
62:See also
30:Delaware
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33:effect
170:(PDF)
134:ISBN
19:The
182:doi
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