EU air pollution regulation: A breath of fresh air for Eastern European polluting industries?

Igor Bagayev and Julie Lochard

Journal of Environmental Economics and Management, 2017, vol. 83, issue C, 145-163

Abstract: Does air quality regulation in the European Union (EU) foster polluting activity in emerging and developing countries? In this paper, we propose an original variable that evaluates regulation stringency, based on the EU Air Quality Framework Directive. Focusing on the underlying mechanism and controlling for endogeneity in the relation between regulation and trade, we provide robust evidence that EU countries implementing more stringent air pollution regulations import relatively more in pollution-intensive sectors from developing and emerging countries in Europe and Central Asia.

Keywords: Air Pollution; Environmental regulation; Trade (search for similar items in EconPapers)
JEL-codes: F14 F18 Q53 Q56 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (18)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeeman:v:83:y:2017:i:c:p:145-163

DOI: 10.1016/j.jeem.2016.12.003

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