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The effect of EU environmental regulation on international trade: restriction of hazardous substance as a trade barrier

Keiichiro Honda

No 341, IDE Discussion Papers from Institute of Developing Economies, Japan External Trade Organization(JETRO)

Abstract: In 2003 the Restriction of Hazardous Substances (RoHS) was established in the EU, which limited the trade of machinery, electrical and electronic equipment that have at least one of the substances considered hazardous under RoHS directive. Since countries trading with the EU must comply with this new regulation, it is expected a decrease in value of imports to the EU. In this paper, it is followed the procedures used in Heckman (1979), as well as the extended procedure suggested by Helpman, Melitz, and Rubinstein (2008) to ascertain the effects on the persistence of trade and values of trade.

Keywords: Europe; Trade problem; International trade; Environmental protection; The RoHS directive; Harmonized standards; Gravity model; Intensive and extensive margin; Sample selection and firm heterogeneity (search for similar items in EconPapers)
JEL-codes: F13 F18 Q56 (search for similar items in EconPapers)
Date: 2012-03-01
New Economics Papers: this item is included in nep-env, nep-int and nep-res
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Published in IDE Discussion Paper = IDE Discussion Paper, No. 341. 2012-03-01

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