Footlose and Pollution Free

Josh Ederington, Arik Levinson & Jenny Minier ()
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Josh Ederington, Arik Levinson & Jenny Minier: Department of Economics, Georgetown University, http://www9.georgetown.edu/faculty/aml6/
Authors registered in the RePEc Author Service: Jenny Minier, Arik Levinson and Josh Ederington

Working Papers from Georgetown University, Department of Economics

Abstract: In numerous studies, economists have found little empirical evidence that environmental regulations affect trade flows. In this paper, we propose and test several common explanations for why the effect of environmental regulations on trade may be difficult to detect. We demonstrate that while most trade occurs among industrialized economies, environmental regulations have stronger effects on trade between industrialized and developing economies. We find that for most industries, pollution abatement costs are a small component of total costs, and are unrelated to trade flows. In addition, we show that those industries with the largest pollution abatement costs also happen to be the least geographically mobile or "footloose." After accounting for these distinctions, we measure a significant effect of pollution abatement costs on imports from developing countries, and in pollution-intensive, footloose industries.

Keywords: Trade and the environment; pollution haven; transport costs; industry mobility. preferences. (search for similar items in EconPapers)
JEL-codes: F1 F14 F18 (search for similar items in EconPapers)
Date: 2003-03-04
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Footloose and Pollution-Free (2005)
Working Paper: Footloose and Pollution-Free (2003)
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