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Have Countries with Lax Environmental Regulations a Comparative Advantage in Polluting Industries?

Miguel Quiroga ; U. Martin Persson (Institutionen för energi och miljö, Fysisk resursteori) ; Thomas Sterner
RFF Discussion Paper Series RFF DP 07-08, p. 38. (2007)
[Artikel, övrig vetenskaplig]

We aim to study whether lax environmental regulations induce comparative advantages, causing the least-regulated countries to specialize in polluting industries. The study is based on Trefler and Zhu’s (2005) definition of the factor content of trade. For the econometrical analysis, we use a cross-section of 71 countries in 2000 to examine the net exports in the most polluting industries. We try to overcome three weaknesses in the empirical literature: the measurement of environmental endowments or environmental stringency, the possible endogeneity of the explanatory variables, and the influence of the industrial level of aggregation. As a result, we do find some evidence in favor of the pollution-haven effect. The exogeneity of the environmental endowments was rejected in several industries, and we also find that industrial aggregation matters.

Nyckelord: comparative advantage, environmental regulation, trade, pollution haven, Porter hypothesis

Denna post skapades 2007-10-04. Senast ändrad 2014-10-09.
CPL Pubid: 51458


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Institutioner (Chalmers)

Institutionen för energi och miljö, Fysisk resursteori
Institutionen för nationalekonomi med statistik, Enheten för miljöekonomi (GU)


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