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. regula...
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Veröffentlicht in: | International economic review (Philadelphia) 2008-02, Vol.49 (1), p.223-254 |
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creator | Levinson, Arik Taylor, M. Scott |
description | 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. |
doi_str_mv | 10.1111/j.1468-2354.2008.00478.x |
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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.</description><identifier>ISSN: 0020-6598</identifier><identifier>EISSN: 1468-2354</identifier><identifier>DOI: 10.1111/j.1468-2354.2008.00478.x</identifier><language>eng</language><publisher>Malden, USA: Blackwell Publishing Inc</publisher><subject>Coefficients ; Cost efficiency ; Economic impact analysis ; Economic models ; Environmental economics ; Environmental policy ; Environmental pollution ; Environmental regulation ; Environmental regulations ; Estimation bias ; Impact analysis ; Imports ; Industrial pollution ; Industrial sectors ; Manufacturing ; Pollution control ; Pollution havens ; Studies ; Trade flows ; U.S.A ; Value added ; Water pollution</subject><ispartof>International economic review (Philadelphia), 2008-02, Vol.49 (1), p.223-254</ispartof><rights>Copyright 2007 Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association</rights><rights>2008 by the Economics Department Of The University Of Pennsylvania And Osaka University Institute Of Social And Economic Research Association</rights><rights>Copyright Blackwell Publishing Ltd. 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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.</description><subject>Coefficients</subject><subject>Cost efficiency</subject><subject>Economic impact analysis</subject><subject>Economic models</subject><subject>Environmental economics</subject><subject>Environmental policy</subject><subject>Environmental pollution</subject><subject>Environmental regulation</subject><subject>Environmental regulations</subject><subject>Estimation bias</subject><subject>Impact analysis</subject><subject>Imports</subject><subject>Industrial pollution</subject><subject>Industrial sectors</subject><subject>Manufacturing</subject><subject>Pollution control</subject><subject>Pollution havens</subject><subject>Studies</subject><subject>Trade flows</subject><subject>U.S.A</subject><subject>Value added</subject><subject>Water pollution</subject><issn>0020-6598</issn><issn>1468-2354</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>2008</creationdate><recordtype>article</recordtype><recordid>eNqNkMtKw0AUhgdRsF4eQQgi7hLPzGRuCxelpBeMqdRWwc0h5gKNrdFMi-3bOzXShStncwb-7zscfkI8CgF176YKaCi1z7gIAwagA4BQ6WBzQDr74JB0ABj4Uhh9TE6srQBA8lB1yNUsue8-3o2SgTcdRt7DOI5n09E48Ybdpyjxon4_6k3PyFGZLmxx_jtPyawfTXtDPx4PRr1u7GcSjPZlrjUIQ2VpjApFrlUKSuRZXkqu00wooCw1whhgBmSaca4lV5DTXOpSwis_Jdft3o-m_lwXdoXLuc2KxSJ9L-q1RQdTrgU48PIPWNXr5t3dhoxqIxUF5iDdQllTW9sUJX4082XabJEC7rrDCncV4a4i3HWHP93hxqm3rfo1XxTbf3s4iiaR-zn_ovUru6qbvc8g1FIZ7nK_zed2VWz2edq8oVRcCXxOBjiZMPrSYwJj_g1Xe4Z5</recordid><startdate>200802</startdate><enddate>200802</enddate><creator>Levinson, Arik</creator><creator>Taylor, M. 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source | Wiley Online Library - AutoHoldings Journals; EBSCOhost Business Source Complete; JSTOR Archive Collection A-Z Listing |
subjects | Coefficients Cost efficiency Economic impact analysis Economic models Environmental economics Environmental policy Environmental pollution Environmental regulation Environmental regulations Estimation bias Impact analysis Imports Industrial pollution Industrial sectors Manufacturing Pollution control Pollution havens Studies Trade flows U.S.A Value added Water pollution |
title | UNMASKING THE POLLUTION HAVEN EFFECT |
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