Flip Side of the Pollution Haven: Do Export Destinations Matter?
Svetlana Batrakova
No 201101, Working Papers from School of Economics, University College Dublin
Abstract:
This paper looks at a reverse side of the pollution haven argument by answering a question on whether environmental regulations of the destination, rather than source countries play a role. The study utilises a firm-level dataset with aggregate export destinations of Europe and rest of the world (ROW) to establish whether a firm adjusts its energy use in response to a decision to start exporting to a more (Europe) or a less (ROW) regulated destination. Although on average, no energy adjustments are found for these destinations, focusing on the most polluting industries or the most energy-intensive firms reveals that fi rms' decision to start exporting to Europe brings about signi ficant energy improvements, unlike a decision to start exporting to the ROW. Further estimations suggest that no adjustments found for firms exporting to the ROW are consistent with exporting to non-OECD region.
Keywords: Export destinations; Energy; Firm level; Regulations (search for similar items in EconPapers)
JEL-codes: C23 F18 L23 Q56 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2011-01
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Citations: View citations in EconPapers (1)
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http://hdl.handle.net/10197/6376 First version, 2011 (application/pdf)
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Persistent link: https://EconPapers.repec.org/RePEc:ucn:wpaper:201101
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