ABSTRACT
This study examines how decentralization and government capacity interactively shape national environmental policy performance. Despite the extensive literature on the policy consequences of decentralization, what remains deficient is a proper understanding of the role that government capacity may play in the process. This study advances an integrative proposition that decentralization can improve policy performance if the government is equipped with capable, efficient and trustworthy administrative apparatus. Findings from a cross-national analysis on national environmental policy performance lend strong support for the general argument by revealing that such positive effects of decentralization are significantly strengthened by the quality of government capacity.