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A race to the bottom is a competition between governments, regions, cities or companies to reduce standards, quality or protections.Governments & CompaniesGovernments including regions and cities compete to attract companies. This gives firms power to lobby for reduced environmental or workplace regulations. In many industries, companies often end up in the country or region that has the least regulations leading to pollution havens, poor working conditions and a lack of consumer and investor protection.
Companies & ConsumersWhen consumers view a product as an undifferentiated commodity companies can compete only on price. This results in a race to the bottom in quality and production practices. When customers always choose the cheapest flight, airlines develop poor customer service. When customers don't care how an apple is produced, industrial agriculture has incentives to use harmful chemicals if it increases their yield.|
Type | | Definition (1) | A competitive system with perverse incentives that encourages increasingly counterproductive or destructive behavior. | Definition (2) | A competition to reduce standards. | Related Concepts | |
Sustainability
This is the complete list of articles we have written about sustainability.
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An overview of existential risk.
An overview of the precautionary principle.
A definition of comparative risk with examples.
The common types of energy efficiency.
The definition of external stakeholder with examples.
Common examples of an economic bad.
The definition of win-lose with examples.
An overview of climate engineering.
Why carbon soil is important.
A few examples of environmental issues.
An overview of greenwashing.
A definition and brief overview of global warming.
The definition of environmental justice with examples.
A list of countries ranked by CO2 emissions per capita.
Nations ranked by total CO2 emissions
A list of major social issues.
A list of common local issues.
A list of common community problems.
A list of common environmental problems.
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