Get 20M+ Full-Text Papers For Less Than $1.50/day. Subscribe now for You or Your Team.

Learn More →

UNMASKING THE POLLUTION HAVEN EFFECT *

UNMASKING THE POLLUTION HAVEN EFFECT * We use theory and empirics to examine the effect of environmental regulations on trade flows. A simple model demonstrates how unobserved heterogeneity, endogeneity, and aggregation issues bias standard measurements of this relationship. A reduced‐form estimate of the model, using data on U.S. regulations and trade with Canada and Mexico for 130 manufacturing industries from 1977 to 1986, indicates that industries whose abatement costs increased most experienced the largest increases in net imports. For the average industry, the change in net imports we ascribe to regulatory costs amounting to 10% of the total increase in trade volume over the period. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Economic Review Wiley

UNMASKING THE POLLUTION HAVEN EFFECT *

Loading next page...
 
/lp/wiley/unmasking-the-pollution-haven-effect-LFw5BiNQn0

References (33)

Publisher
Wiley
Copyright
2008 by the Economics Department Of The University Of Pennsylvania And Osaka University Institute Of Social And Economic Research Association
ISSN
0020-6598
eISSN
1468-2354
DOI
10.1111/j.1468-2354.2008.00478.x
Publisher site
See Article on Publisher Site

Abstract

We use theory and empirics to examine the effect of environmental regulations on trade flows. A simple model demonstrates how unobserved heterogeneity, endogeneity, and aggregation issues bias standard measurements of this relationship. A reduced‐form estimate of the model, using data on U.S. regulations and trade with Canada and Mexico for 130 manufacturing industries from 1977 to 1986, indicates that industries whose abatement costs increased most experienced the largest increases in net imports. For the average industry, the change in net imports we ascribe to regulatory costs amounting to 10% of the total increase in trade volume over the period.

Journal

International Economic ReviewWiley

Published: Feb 1, 2008

There are no references for this article.