|
|
|
|
||||
|
||||
Environmental Regulation and International Trade: Empirical Results for the Manufacturing Industry in Germany, the Netherlands and the US, 1972 - 1992Abay MulatuLondon School of Economics & Political Science (LSE) - Department of Economic History Raymond J.G.M. FloraxPurdue University; VU University Amsterdam - Department of Spatial Economics Cees WithagenFree University of Amsterdam; Tilburg University February 2004 Tinbergen Institute Discussion Paper No. TI 2004-020/3 Abstract: We empirically investigate the responsiveness of international trade to the stringency of environmental regulation. Stringent environmental regulation may impair the export competitiveness of 'dirty' domestic industries, and as a result, 'pollution havens' emerge in countries where environmental regulation is 'over-lax.' We examine the impact of pollution abatement and control costs on net exports in order to grasp this phenomenon. Theoretically, our analysis is related to a general equilibrium model of trade and pollution nesting the pollution haven motive for trade with the factor endowment motive. We analyze data on two-digit ISIC manufacturing industries during the period 1977-1992 in Germany, the Netherlands and the US, and show that trade patterns in 'dirty' commodities are jointly determined by relative factor endowments and environmental stringency differentials.
Number of Pages in PDF File: 35 Keywords: Trade, competitiveness, environmental policy, pollution abatement, pollution haven JEL Classification: F14, L50, Q28 working papers seriesDate posted: February 28, 2004Suggested CitationContact Information
|
|
||||||||||||||||||||||
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
FAQ
Terms of Use
Privacy Policy
Copyright
This page was processed by apollo8 in 0.359 seconds
