The cleanup of US manufacturing through pollution offshoring

Jaerim Choi (), Jay Hyun, Gueyon Kim and Ziho Park

Journal of International Economics, 2025, vol. 154, issue C

Abstract: We study the role of offshoring in understanding long-run environmental impacts of trade liberalization and the cleanup of US manufacturing. Leveraging establishment-level pollution emissions and business activity data and a change in US trade policy toward China in the early 2000s, we show that US establishments decrease toxic emissions in response to a reduction in trade policy uncertainty. Emission abatement is mainly driven by a decline in pollution emission intensity. We provide comprehensive evidence that highlights the role of offshoring: US manufacturers, especially those that emit pollutants intensely, source from abroad and establish more subsidiaries in China following the event.

Keywords: Manufacturing cleanup; Pollution offshoring; Pollution haven; Environmental regulation; Environment and trade (search for similar items in EconPapers)
JEL-codes: D22 F14 F18 Q53 Q56 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0022199625000029
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:inecon:v:154:y:2025:i:c:s0022199625000029

DOI: 10.1016/j.jinteco.2025.104046

Access Statistics for this article

Journal of International Economics is currently edited by Gourinchas, Pierre-Olivier and Rodríguez-Clare, Andrés

More articles in Journal of International Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().