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North-South Displacement Effects of Environmental Regulation: The Case of Battery Recycling

Shinsuke Tanaka, Kensuke Teshima and Eric Verhoogen

American Economic Review: Insights, 2022, vol. 4, issue 3, 271-88

Abstract: This study examines the effect of a tightening of the US air quality standard for lead in 2009 on the relocation of battery recycling to Mexico and on infant health in Mexico. In the United States, air-borne lead dropped sharply near affected plants, most of which were battery-recycling plants. Exports of used batteries to Mexico rose markedly. In Mexico, production increased at battery-recycling plants relative to comparable industries, and birth outcomes deteriorated within two miles of those plants relative to areas slightly farther away. The case provides a salient example of a pollution-haven effect between a developed and a developing country.

JEL-codes: F18 I12 J13 O15 Q51 Q53 Q58 (search for similar items in EconPapers)
Date: 2022
References: View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Working Paper: North-South Displacement Effects of Environmental Regulation: The Case of Battery Recycling (2021) Downloads
Working Paper: North-South Displacement Effects of Environmental Regulation: The Case of Battery Recycling (2021) Downloads
Working Paper: North-South Displacement Effects of Environmental Regulation: The Case of Battery Recycling (2021) Downloads
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DOI: 10.1257/aeri.20210201

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