Environmental Regulation and Competitiveness: Evidence from Romania
Guglielmo Maria Caporale,
Christophe Rault (),
Robert Sova () and
No 5029, IZA Discussion Papers from Institute for the Study of Labor (IZA)
According to the pollution haven hypotheses differences in environmental regulation affect trade flows and plant location. Specifically, environmental stringency should decrease exports and increase imports of "dirty" goods. This paper estimates a gravity model to establish whether the implementation of more stringent regulations in Romania has indeed affected its competitiveness and decreased exports towards its European trading partners. Our findings do not provide empirical support to the pollution haven hypothesis, i.e. environmental stringency is not found to affect significantly total trade, or its components (pollution intensive trade and pollution intensive trade related to non-resource-based trade).
Keywords: gravity model; environmental stringency; competiveness (search for similar items in EconPapers)
JEL-codes: F14 Q28 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-env, nep-reg, nep-res and nep-tra
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Published in: Ecological Economics, 2012, 81, 130-139
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Journal Article: Environmental Regulation and Competitiveness: Evidence from Romania (2012)
Working Paper: Environmental Regulation and Competitiveness: Evidence from Romania (2012)
Working Paper: Environmental Regulation and Competitiveness: Evidence from Romania (2010)
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Persistent link: http://EconPapers.repec.org/RePEc:iza:izadps:dp5029
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