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EU air pollution regulation: A breath of fresh air for Eastern European polluting industries?

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  • Bagayev, Igor
  • Lochard, Julie

Abstract

Does air quality regulation in the European Union (EU) foster polluting activity in emerging and developing countries? In this paper, we propose an original variable that evaluates regulation stringency, based on the EU Air Quality Framework Directive. Focusing on the underlying mechanism and controlling for endogeneity in the relation between regulation and trade, we provide robust evidence that EU countries implementing more stringent air pollution regulations import relatively more in pollution-intensive sectors from developing and emerging countries in Europe and Central Asia.

Suggested Citation

  • Bagayev, Igor & Lochard, Julie, 2017. "EU air pollution regulation: A breath of fresh air for Eastern European polluting industries?," Journal of Environmental Economics and Management, Elsevier, vol. 83(C), pages 145-163.
  • Handle: RePEc:eee:jeeman:v:83:y:2017:i:c:p:145-163
    DOI: 10.1016/j.jeem.2016.12.003
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    Cited by:

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    2. Ying Zhang & Yingli Huang, 2023. "Killing Two Birds with One Stone or Missing One of Them? The Synergistic Governance Effect of China’s Carbon Emissions Trading Scheme on Pollution Control and Carbon Emission Reduction," Sustainability, MDPI, vol. 15(13), pages 1-25, June.
    3. Li, Ke & Yuan, Weihong & Li, Jianglong & Ai, Hongshan, 2021. "Effects of time-dependent environmental regulations on air pollution: Evidence from the Changsha-Zhuzhou-Xiangtan region, China," World Development, Elsevier, vol. 138(C).
    4. Lei Ding & Xuejuan Fang, 2022. "Spatial–temporal distribution of air-pollution-intensive industries and its social-economic driving mechanism in Zhejiang Province, China: a framework of spatial econometric analysis," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(2), pages 1681-1712, February.
    5. Thais Nunez-Rocha & Camelia Turcu, 2019. "Trade in Fuels and Environmental Regulation: A Two-Sided Story," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 61(2), pages 302-343, June.
    6. Óscar Rodil-Marzábal & Hugo Campos-Romero, 2021. "The Intra-EU Value Chain: An Approach to Its Economic Dimension and Environmental Impact," Economies, MDPI, vol. 9(2), pages 1-17, April.
    7. Jarosław Szlugaj & Krzysztof Galos, 2021. "Limestone Sorbents Market for Flue Gas Desulphurisation in Coal-Fired Power Plants in the Context of the Transformation of the Power Industry—A Case of Poland," Energies, MDPI, vol. 14(14), pages 1-16, July.
    8. Xueping Wu & Ming Gao, 2021. "Effects of different environmental regulations and their heterogeneity on air pollution control in China," Journal of Regulatory Economics, Springer, vol. 60(2), pages 140-166, December.
    9. Xueping Wu & Ming Gao & Shihong Guo & Wei Li, 2019. "Effects of environmental regulation on air pollution control in China: a spatial Durbin econometric analysis," Journal of Regulatory Economics, Springer, vol. 55(3), pages 307-333, June.
    10. Shi, Beibei & Jiang, Lisha & Bao, Rui & Zhang, Ziqing & Kang, YuanQi, 2023. "The impact of insurance on pollution emissions: Evidence from China's environmental pollution liability insurance," Economic Modelling, Elsevier, vol. 121(C).
    11. Mei Ren & Caihong Huang & Xiaomin Wang & Wei Hu & Wenxin Zhang, 2019. "Research on the Distribution of Pollution-Intensive Industries and Their Spatial Effects in China," Sustainability, MDPI, vol. 11(19), pages 1-20, September.
    12. Fawzia Mohammed Idris, "undated". "Evaluating an environmental tax as a source of funding for Social Health Insurance: Sudan case," Review of Socio - Economic Perspectives 202194, Reviewsep.
    13. Du, Kerui & Cheng, Yuanyuan & Yao, Xin, 2021. "Environmental regulation, green technology innovation, and industrial structure upgrading: The road to the green transformation of Chinese cities," Energy Economics, Elsevier, vol. 98(C).
    14. Huang, Geng & He, Ling-Yun & Lin, Xi, 2023. "Deterioration or improvement? Intermediate product import and enterprises' environmental performance," Structural Change and Economic Dynamics, Elsevier, vol. 65(C), pages 139-150.
    15. Wu, Mingqin & Cao, Xun, 2021. "Greening the career incentive structure for local officials in China: Does less pollution increase the chances of promotion for Chinese local leaders?," Journal of Environmental Economics and Management, Elsevier, vol. 107(C).
    16. Konstantin Sommer & Henri L.F. de Groot & Franc Klaassen, 2022. "The effects of market integration on pollution: an analysis of EU enlargements," Tinbergen Institute Discussion Papers 22-039/VI, Tinbergen Institute, revised 21 Mar 2023.
    17. repec:lib:00johs:v:16:y:2020:i:1:p:41-50 is not listed on IDEAS
    18. Beatriz Jiménez‐Parra & Daniel Alonso‐Martínez & José‐Luis Godos‐Díez, 2018. "The influence of corporate social responsibility on air pollution: Analysis of environmental regulation and eco‐innovation effects," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(6), pages 1363-1375, November.
    19. Quy Van Khuc & Minh-Hoang Nguyen & Tam-Tri Le & Truc-Le Nguyen & Thuy Nguyen & Hoang Khac Lich & Quan-Hoang Vuong, 2022. "Brain Drain out of the Blue: Pollution-Induced Migration in Vietnam," IJERPH, MDPI, vol. 19(6), pages 1-20, March.

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    More about this item

    Keywords

    Air Pollution; Environmental regulation; Trade;
    All these keywords.

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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