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
There are 2 versions of this paper
Exporting Pollution
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: Suggested Citation
Itzhak Ben-David (Contact Author)
Ohio State University (OSU) - Department of Finance ( email )
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Fisher 700D
Columbus, OH 43210-1144
United States
773 988 1353 (Phone)
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