From trust to sustainable transitions: How regional blocs shape the environment-economic growth trade-off

LY HOANG VU

Email: [email protected]

Faculty of Commerce and Tourism, University of Finance - Marketing, Vietnam

Abstract

The paper explores how individual-level characteristics shape trust in regional blocs and how such trust influences trade-offs between environmental protection and economic growth. Harmonized data from 443,488 respondents across 107 countries (1981-2023), combined with World Values Survey (WVS) and European Values Study (EVS) trend data, were utilized. The results indicate that the effects of democracy and economic development vary across regions, suggesting that the legitimacy of supranational institutions is context-dependent. Trust in regional organizations also shapes environmental priorities, although the magnitude of its influence differs. Specifically, trust in the European Union (EU) is associated with a greater prioritization of environmental protection over economic growth. The Association of Southeast Asian Nations (ASEAN) exhibits a weaker effect, while other regions in the survey show no significant relationship. These findings suggest that trust in regional institutions encourages support for policies with higher environmental costs when these institutions are perceived as credible, underscoring the importance of supranational legitimacy in advancing environmental governance.

Keywords: Trust, regional blocs, environment - economic growth trade-off

(This article was published in the Vietnam Economic&Financial Review, Vol 2, Issue 2, April 2026)

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