Exporting Pollution

Fisher College of Business Working Paper No. 2018-03-20

Charles A. Dice Working Paper No. 2018-20

61 Pages Posted: 22 Sep 2018 Last revised: 25 Sep 2018

See all articles by Itzhak Ben-David

Itzhak Ben-David

Ohio State University (OSU) - Department of Finance; National Bureau of Economic Research (NBER)

Stefanie Kleimeier

Maastricht University - Department of Finance

Michael Viehs

Oxford University Smith School of Enterprise and the Environment; European Centre for Corporate Engagement (ECCE)

Multiple version iconThere are 2 versions of this paper

Date Written: September 20, 2018

Abstract

Despite awareness of the detrimental impact of CO2 pollution on the world climate, countries vary widely in how they design and enforce environmental laws. Using novel micro data about firms’ CO2 emissions levels in their home and foreign countries, we document that firms headquartered in countries with strict environmental policies perform their polluting activities abroad in countries with relatively weaker policies. These effects are stronger for firms in high-polluting industries and with poor corporate governance characteristics. Although firms export pollution, they nevertheless emit less overall CO2 globally in response to strict environmental policies at home.

Keywords: Pollution, Production, Pollution Haven Hypothesis

JEL Classification: N50, O13, P18, Q56, R11

Suggested Citation

Ben-David, Itzhak and Kleimeier, Stefanie and Viehs, Michael, Exporting Pollution (September 20, 2018). Fisher College of Business Working Paper No. 2018-03-20. Available at SSRN: https://ssrn.com/abstract=3252563 or http://dx.doi.org/10.2139/ssrn.3252563

Itzhak Ben-David (Contact Author)

Ohio State University (OSU) - Department of Finance ( email )

2100 Neil Avenue
Fisher 700D
Columbus, OH 43210-1144
United States
773 988 1353 (Phone)

HOME PAGE: http://fisher.osu.edu/fin/faculty/Ben-David/index.htm

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

HOME PAGE: http://fisher.osu.edu/fin/faculty/Ben-David/

Stefanie Kleimeier

Maastricht University - Department of Finance ( email )

Maastricht, 6200 MD
Netherlands

Michael Viehs

Oxford University Smith School of Enterprise and the Environment ( email )

South Parks Road
Oxford, OX1 3QY
United Kingdom
+44-1865-614938 (Phone)

European Centre for Corporate Engagement (ECCE) ( email )

Tongersestraat 53
Maastricht, 6211LM
Netherlands

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