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Emerging markets and private governance: the political economy of sustainable palm oil in China and India

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  • Philip Schleifer
  • Yixian Sun
Abstract
Private governance programs are now an important source of regulation in global value chains – particularly in context of North–South trade. But can these programs play a similar role in the value chains feeding into fast-growing emerging markets like China and India? Most scholars doing research on the topic draw a pessimistic picture. They argue that the scope conditions for private sustainability governance are not yet present in these markets. Our analysis of the Roundtable on Sustainable Palm Oil – a leading non-state certification program – in China and India partially confirms this view. At the same time, however, we find that emerging markets are not a unified category. We observe that sustainable palm oil is beginning to gain momentum in China, whereas uptake in India remains much weaker. We trace this back to a number of key market conditions, which we show are more favorable in China. In addition, our analysis highlights the role of the Chinese state in creating awareness of and shaping firms’ interests in sustainable palm oil.

Suggested Citation

  • Philip Schleifer & Yixian Sun, 2018. "Emerging markets and private governance: the political economy of sustainable palm oil in China and India," Review of International Political Economy, Taylor & Francis Journals, vol. 25(2), pages 190-214, March.
    • Handle: RePEc:taf:rripxx:v:25:y:2018:i:2:p:190-214
    DOI: 10.1080/09692290.2017.1418759
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    Citations

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    Cited by:

    1. Janina Grabs, 2023. "A theory of credible cross‐temporal corporate commitments as goal‐based private sustainability governance," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 5146-5160, December.
    2. Bloomfield, Michael J., 2020. "South-South trade and sustainable development: The case of Ceylon tea," Ecological Economics, Elsevier, vol. 167(C).
    3. Baines, Joseph & Hager, Sandy Brian, 2021. "Commodity Traders in a Storm: Financialization, Corporate Power and Ecological Crisis," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, issue Latest Ar.
    4. Clara Brandi, 2021. "The Interaction of Private and Public Governance: The Case of Sustainability Standards for Palm Oil," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 33(6), pages 1574-1595, December.
    5. van der Ven, Hamish & Sun, Yixian & Cashore, Benjamin, 2021. "Sustainable commodity governance and the global south," Ecological Economics, Elsevier, vol. 186(C).
    6. Verena Bitzer & Alessia Marazzi, 2021. "Southern sustainability initiatives in agricultural value chains: a question of enhanced inclusiveness? The case of Trustea in India," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 38(2), pages 381-395, June.
    7. Renckens, Stefan & Auld, Graeme, 2019. "Structure, path dependence, and adaptation: North-South imbalances in transnational private fisheries governance," Ecological Economics, Elsevier, vol. 166(C), pages 1-1.
    8. Sun, Yixian & van der Ven, Hamish, 2020. "Swimming in their own direction: Explaining domestic variation in homegrown sustainability governance for aquaculture in Asia," Ecological Economics, Elsevier, vol. 167(C).
    9. Etsuyo Michida, 2023. "Effectiveness of Self-Regulating Sustainability Standards for the Palm Oil Industry," Working Papers DP-2023-04, Economic Research Institute for ASEAN and East Asia (ERIA).
    10. Go, You-How & Lau, Wee-Yeap, 2024. "Terms of trade or market power? Further evidence from dynamic spillovers in return and volatility between Malaysian crude palm oil and foreign exchange markets," The North American Journal of Economics and Finance, Elsevier, vol. 73(C).
    11. Sippl, Kristin, 2020. "Southern Responses to Fair Trade Gold: Cooperation, Complaint, Competition, Supplementation," Ecological Economics, Elsevier, vol. 169(C).
    12. Rui Wang & Khai Ern Lee & Mazlin Mokhtar & Thian Lai Goh, 2022. "The Challenges of Palm Oil Sustainable Consumption and Production in China: An Institutional Theory Perspective," Sustainability, MDPI, vol. 14(8), pages 1-16, April.
    13. José Carlos Marques & Burkard Eberlein, 2021. "Grounding transnational business governance: A political‐strategic perspective on government responses in the Global South," Regulation & Governance, John Wiley & Sons, vol. 15(4), pages 1209-1229, October.
    14. Wilman, Elizabeth A., 2019. "Market Redirection Leakage in the Palm Oil Market," Ecological Economics, Elsevier, vol. 159(C), pages 226-234.
    15. Andonova, Liliana B. & Piselli, Dario, 2022. "Transnational partnerships, domestic institutions, and sustainable development. The case of Brazil and the Amazon Region Protected Areas program," World Development, Elsevier, vol. 157(C).
    16. Brandão, Frederico & Schoneveld, George & Pacheco, Pablo & Vieira, Ima & Piraux, Marc & Mota, Dalva, 2021. "The challenge of reconciling conservation and development in the tropics: Lessons from Brazil’s oil palm governance model," World Development, Elsevier, vol. 139(C).
    17. Hamish van der Ven & David Barmes, 2023. "The uneasy marriage of private standards and public policies for sustainable commodity governance," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 5161-5173, December.
    18. Watts, John D. & Pasaribu, Katryn & Irawan, Silvia & Tacconi, Luca & Martanila, Heni & Wiratama, Cokorda Gde Wisnu & Musthofa, Fauzan Kemal & Sugiarto, Bernadinus Steni & Manvi, Utami Putri, 2021. "Challenges faced by smallholders in achieving sustainable palm oil certification in Indonesia," World Development, Elsevier, vol. 146(C).

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