Transnational linkages and the Spillover of Environment-Efficiency into Developing Countries

41 Pages Posted: 21 Nov 2008 Last revised: 15 Sep 2009

Richard Perkins

London School of Economics & Political Science (LSE)

Eric Neumayer

London School of Economics and Political Science (LSE)

Date Written: May 26, 2009

Abstract

Arguments about the "positive" influence of growing transnational linkages have typically focused on their role in diffusing environmentally-superior innovations which help to raise countries' environment-efficiency. The present article empirically tests these claims by examining whether developing countries' linkages with more CO2 and SO2-efficient economies contribute to domestic improvements in CO2 and SO2-efficiency. Our large-N, statistical findings caution against some of the efficiency-oriented optimism voiced by supporters of globalization. Although imports ties with more pollution-efficient countries are found to spillover into improved domestic CO2 and SO2-efficiency, neither transnational linkages via exports, inward foreign direct investment (FDI) nor telephone calls appear to have any influence on domestic pollution-efficiency.

Keywords: globalization, trade, spillover, developing, carbon dioxide, sulfur dioxide

Suggested Citation

Perkins, Richard and Neumayer, Eric, Transnational linkages and the Spillover of Environment-Efficiency into Developing Countries (May 26, 2009). Available at SSRN: https://ssrn.com/abstract=1305131 or http://dx.doi.org/10.2139/ssrn.1305131

Richard Perkins (Contact Author)

London School of Economics & Political Science (LSE) ( email )

Houghton Street
London, WC2A 2AE
United Kingdom

Eric Neumayer

London School of Economics and Political Science (LSE) ( email )

Houghton Street
WC2A 2AE London
United Kingdom
+44 207 955 7598 (Phone)
+44 207 955 7412 (Fax)

HOME PAGE: http://personal.lse.ac.uk/neumayer

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