Exporting Pollution

Itzhak Ben-David, Stefanie Kleimeier and Michael Viehs
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Michael Viehs: Oxford University Smith School of Enterprise and the Environment; European Centre for Corporate Engagement (ECCE)

Working Paper Series from Ohio State University, Charles A. Dice Center for Research in Financial Economics

Abstract: Despite awareness of the detrimental impact of CO2 pollution on the world climate, countries vary widely in how they design and enforce environmental laws. Using novel micro data about firms’ CO2 emissions levels in their home and foreign countries, we document that firms headquartered in countries with strict environmental policies perform their polluting activities abroad in countries with relatively weaker policies. These effects are stronger for firms in high-polluting industries and with poor corporate governance characteristics. Although firms export pollution, they nevertheless emit less overall CO2 globally in response to strict environmental policies at home.

JEL-codes: N50 O13 P18 Q56 R11 (search for similar items in EconPapers)
Date: 2018-09
New Economics Papers: this item is included in nep-ene, nep-env, nep-his and nep-int
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ecl:ohidic:2018-20

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