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An Empirical Examination of the Pollution Haven Hypothesis for India: Towards a Green Leontief Paradox?

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  • Erik Dietzenbacher
  • Kakali Mukhopadhyay

Abstract

Using input–output analysis, we examine whether India can be regarded as a pollution haven. We calculate the extra CO 2 , SO 2 and NO x emissions induced by 1 billion rupees of additional exports. This is compared with the reduction of Indian pollution caused by an import increase of equal size. In contrast to what the pollution haven hypothesis states for developing countries, we find that India considerably gains from extra trade. Comparing 1996/1997 with 1991/1992, the gains have only increased, indicating that India has moved␣further away from being a pollution haven. The outcome is robust to changes in the underlying assumptions. Copyright Springer Science+Business Media, Inc. 2007

Suggested Citation

  • Erik Dietzenbacher & Kakali Mukhopadhyay, 2007. "An Empirical Examination of the Pollution Haven Hypothesis for India: Towards a Green Leontief Paradox?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 36(4), pages 427-449, April.
    • Handle: RePEc:kap:enreec:v:36:y:2007:i:4:p:427-449
    DOI: 10.1007/s10640-006-9036-9
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    References listed on IDEAS

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    1. Javorcik Beata Smarzynska & Wei Shang-Jin, 2003. "Pollution Havens and Foreign Direct Investment: Dirty Secret or Popular Myth?," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 3(2), pages 1-34, December.
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    More about this item

    Keywords

    international trade; environment; pollution haven; input–output analysis; F18; Q32; D57;
    All these keywords.

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis

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