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A lack of clear political commitment together with confusing rules and enforcement often characterize the institutional context of policy implementation and regulatory compliance in developing countries. By connecting such contextual features to existing models of policy implementation and regulatory compliance, we examine how regulatory factors are related to basic and proactive corporate environmental management practices in the Pearl River Delta region in China. Drawing on data derived from both a survey and in‐depth interviews, we show that a perception of clear political commitment to environmental protection across multiple government levels and units is positively associated with business efforts in basic environmental practices, regardless of the specific enforcement intensity. Nevertheless, a perception of clear political commitment is not related to proactive environmental practices. Conversely, a perception of policy ambiguity, in the form of confusing regulatory standards and enforcement, is negatively associated with corporate efforts in both basic and proactive environmental practices; yet, intensive inspections mitigate these negative associations with policy ambiguity. [ABSTRACT FROM AUTHOR]

While globalization has brought far-reaching benefits to communities around the world in the form of increasing foreign investment and trade, and reduced levels of poverty, the externalities of the global market have also taken on greater prominence. In particular, issues of global environmental change now stand as a central concern for governments around the world, with increasing threats to the sustainability of hard-won development gains. While international frameworks such as the United Nations conventions on climate change and biodiversity have been enacted to take joint action on issues of common concern, a major challenge has been to enact effective implementation regimes to achieve results on the ground. One hope lays in the forces of the market itself, engaging global market forces and the role of the private sector to facilitate a global shift to sustainable growth and business practices. This article analyses this challenge and emerging opportunities for market-based approaches to implement international environmental law through a case study of China and the innovative partnerships being forged there between the UN, governmental and private institutions. [ABSTRACT FROM AUTHOR]