Sources of Comparative Advantage in Polluting Industries
51 Pages Posted: 25 Aug 2012
There are 2 versions of this paper
Sources of Comparative Advantage in Polluting Industries
Sources of Comparative Advantage in Polluting Industries
Date Written: August 2012
Abstract
We study the determinants of comparative advantage in polluting industries. We combine data on environmental policy at the country level with data on pollution intensity at the industry level to show that countries with laxer environmental regulation have a comparative advantage in polluting industries. Further, we address the potential problem of reverse causality. We propose an instrument for environmental regulation based on meteorological determinants of pollution dispersion identi...ed by the atmospheric pollution literature. We find that the effect of environmental regulation on the pattern of trade is causal and comparable in magnitude to the effect of physical and human capital.
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
Offshoring and Directed Technical Change
By Daron Acemoglu, Gino A. Gancia, ...
-
Offshoring and Directed Technical Change
By Daron Acemoglu, Gino A. Gancia, ...
-
The Environment and Directed Technical Change
By Daron Acemoglu, Philippe Aghion, ...
-
The Environment and Directed Technical Change
By Daron Acemoglu, Philippe Aghion, ...
-
The Environment and Directed Technical Change
By Daron Acemoglu, Philippe Aghion, ...
-
Offshoring and Directed Technical Change
By Daron Acemoglu, Gino A. Gancia, ...
-
Appropriate Technology and Growth
By Susanto Basu and David N. Weil
-
By Antonio Ciccone and Giovanni Peri
