Journal
ECOLOGICAL ECONOMICS
Volume 112, Issue -, Pages 150-160Publisher
ELSEVIER SCIENCE BV
DOI: 10.1016/j.ecolecon.2015.02.022
Keywords
Pollution haven; Environmental Kuznets curve; Production offshoring; Toxics Release Inventory; Pollution release and transfer register; Porter hypothesis
Funding
- U.S. Census Bureau Center for Economic Studies
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National registries of toxic chemical emissions and facilities are increasingly used to raise public awareness of potential health hazards in local areas, but an unintended consequence may be the offshoring of production to less regulated countries. Using disaggregated U.S. trade data, this study examines the impact of registry listing on subsequent bilateral trade flows. Estimates from a difference-in-differences model indicate a significant shift toward imports from poorer countries following registry listing. Assuming that environmental protection is a normal good, this result suggests the emergence of pollution havens due to more stringent U.S. environmental regulation. (C) 2015 Elsevier B.V. All rights reserved.
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