Strategic Environmental Policies in the Presence of Foreign Direct Investment
AbstractWe analyze strategic environmental standards in the presence of foreign direct investment. A number of foreign firms located in a host country compete with a domestic firm in another country to export a homogeneous good to a third country. When the number of foreign firms is exogenous, the host country applies a stricter environmental regulation than the other producing country. However, under free entry and exit of foreign firms, the host country may apply a less severe standard under both non-cooperative and cooperative equilibrium. We also find that the nature market structure does not affect the equilibrium values of total pollution if export subsidies are also used. Copyright Springer 2005
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by European Association of Environmental and Resource Economists in its journal Environmental & Resource Economics.
Volume (Year): 30 (2005)
Issue (Month): 1 (January)
Contact details of provider:
Web page: http://www.springerlink.com/link.asp?id=100263
environment; emission permits; foreign direct investment; trade; pollution;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Wayne B. Gray, 1997.
"Manufacturing Plant Location: Does State Pollution Regulation Matter?,"
NBER Working Papers
5880, National Bureau of Economic Research, Inc.
- Wayne B Gray, 1997. "Manufacturing Plant Location: Does State Pollution Regulation Matter?," Working Papers 97-8, Center for Economic Studies, U.S. Census Bureau.
- Martin D. D. Evans & Richard K. Lyons, 2003.
"Are Different-Currency Assets Imperfect Substitutes?,"
CESifo Working Paper Series
978, CESifo Group Munich.
- Martin D. D. Evans & Richard K. Lyons, 2000. "Are Different-Currency Assets Imperfect Substitutes?," Working Papers gueconwpa~00-00-05, Georgetown University, Department of Economics.
- Sajal Lahiri & Yoshiyasu Ono, 2000. "Protecting the environment in the presence of foreign direct investment: tax versus quantity restriction," Economics Discussion Papers 506, University of Essex, Department of Economics.
- Paul Missios & Halis Murat Yildiz & Ida Ferrara, 2009. "Foreign Direct Investment and the Choice of Environmental Policy," Working Papers 004, Ryerson University, Department of Economics.
- Celik, Sule & Orbay, Benan Zeki, 2011. "Location choice under trade and environmental policies," Economic Modelling, Elsevier, vol. 28(4), pages 1710-1715, July.
- Francesca Sanna-Randaccio & Roberta Sestini & Ornella Tarola, 2014. "Unilateral Climate Policy and Foreign Direct Investment with Firm and Country Heterogeneity," Working Papers 2014.55, Fondazione Eni Enrico Mattei.
- Robert Elliott & Ying Zhou, 2013.
"Environmental Regulation Induced Foreign Direct Investment,"
Environmental & Resource Economics,
European Association of Environmental and Resource Economists, vol. 55(1), pages 141-158, May.
- Robert J R Elliott & Ying Zhou, 2013. "Environmental Regulation Induced Foreign Direct Investment," Discussion Papers 13-08, Department of Economics, University of Birmingham.
- Baomin Dong & Jiong Gong & Xin Zhao, 2012. "FDI and environmental regulation: pollution haven or a race to the top?," Journal of Regulatory Economics, Springer, vol. 41(2), pages 216-237, April.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.