Does industry concentration matter for pollution haven effects?
Svetlana Batrakova
No 90, GRI Working Papers from Grantham Research Institute on Climate Change and the Environment
Abstract:
This paper focuses on the role of firm�s market power and industry concentration in a still debated issue of pollution haven effects or carbon �leakage� representedas increased trade fows in the most polluting sectors from the developing worldspurred by regulations in developed countries. A firm in a relatively competitiveindustry with less market power has no option to transfer costs of environmentalregulations to consumers and may be more likely to resort to �importing pollution�from places with lax environmental standards that insure cheaper inputs as a resultof such regulations at home. This paper finds that a degree of industry�s concentration has an effect on firms� margins of products that were affected by the EU ETSpolicy in 2005 and that are imported from the developing world. Firms in from the developing world post 2005 more than firms in a less competitive setting.
Date: 2012-09
New Economics Papers: this item is included in nep-agr, nep-com, nep-ene and nep-env
References: Add references at CitEc
Citations:
Downloads: (external link)
http://www.lse.ac.uk/GranthamInstitute/wp-content/ ... on-haven-effects.pdf (application/pdf)
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:lsg:lsgwps:wp90
Access Statistics for this paper
More papers in GRI Working Papers from Grantham Research Institute on Climate Change and the Environment Contact information at EDIRC.
Bibliographic data for series maintained by The GRI Administration ().