Historical Foundations of Green Developmental Policies: Divergent Trajectories in United States and France

In recent years, many countries have adopted biodiversity offset policies to internalize the ecological impacts of land developments. Although national policies share the general principle of equalizing ecological harm with gain, there is substantial variation across programs regarding the institutional forms governing offsetting. In this paper, we compare biodiversity governance in the United States and France to reflect more broadly on the factors shaping divergent trajectories of green developmental policies. Both countries have some form of biodiversity offsetting in place, but the major fault line of difference is the more extensive use of market‐based instruments (MBI) in the United States. Using a historical lens, we argue that one important reason for this variation lies in the different legal‐institutional definitions of biodiversity. A narrower definition in the United States focused on individual species, versus a broader definition in France focused on ecosystems, has facilitated a more standardized biodiversity governance arrangement in the United States. Leveraging this standardization, biodiversity markets have expanded in the United States while similar efforts to institutionalize market mechanisms have struggled in France. The comparison allows us to draw insights into the challenges in greening economic development, particularly in showing how historical scientific, legal, and institutional structures condition policy outcomes.