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Environmental Regulation and Export Performance: Evidence from the USA

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  • Zinnia Mukherjee

    (Simmons University)

  • Niloufer Sohrabji

    (Simmons University)

Abstract

This paper uses a difference-in-differences approach to analyze the performance of US exports of environmentally sensitive goods (ESGs) relative to non-ESGs for the years from 1979 to 2014. This period witnessed a steady expansion of the volume of US trade and a major environmental federal policy initiative in the form of the 1990 Clean Air Act amendment. We investigate the effect of this initiative on trade in various sectors. The results show that export shares performance of ESGs in sectors such as crude materials and mineral fuels and manufacturing improved vis-à-vis non-ESGs after 1990 while it worsened for environmentally sensitive chemical goods.

Suggested Citation

  • Zinnia Mukherjee & Niloufer Sohrabji, 2022. "Environmental Regulation and Export Performance: Evidence from the USA," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 48(2), pages 198-225, April.
    • Handle: RePEc:pal:easeco:v:48:y:2022:i:2:d:10.1057_s41302-022-00215-0
    DOI: 10.1057/s41302-022-00215-0
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    More about this item

    Keywords

    Difference-in differences estimation; Environmental policy; Environmentally sensitive goods (ESGs); Export competitiveness; USA;
    All these keywords.

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • 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
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General

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