The word “ governance” implies the image of a structural framework where actors of same interest, institution practice their rights, negotiate and establish rules by accumulating the agreements to regulate protect and develop that particular realm. According to UNDP, “ The exercise of economic, political and administrative authority to manage a country’s affairs at all levels. It compromises mechanisms, process and institutions through which citizens and groups articulate their interests, exercise their legal rights, meet their obligations and mediate their differences.” While taking about governance another terminology comes up automatically i.e. “good governance”. UNDP notes that: “Good governance is, among other things, participatory, transparent and accountable. It is also effective and equitable. And it promotes the rule of law. Good governance ensures that political, social and economic priorities are based on broad consensus in society and that the voices of the poorest and the most vulnerable are heard in decision-making over the allocation of development resources.” By OECD, “ Good governance encompasses the role of public authorities in establishing the environment in which economic operators function and in determining the
There are generally two types of institutions, the formal ones and the informal ones. The formal institutions are the laws and rules made by government and are mentioned in the constitution of a state. In contrary to that the informal institutions are the unwritten rules and customs of the society. The main difference between the two types of institutions is that an authority enforces the formal institutions where the informal one is not enforced. In the paper, we will discuss the roles of both kinds of institutions for promoting sustainable society-environment interaction. We will shed light on how the central laws can effect the environment and also localized rules and