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Do Environmental Regulations Influence the Location Behavior of French Firms?

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Author Info
Sébastien Raspiller
Nicolas Riedinger
Abstract

This paper investigates the impact of environmental regulations on the location choices made by firms for their industrial activities, using a sample of newly appeared imports of French firms from foreign industrial subsidiaries. A simple static model based on the production cost minimization is developed in order to control for heterogeneous factor costs within countries, distinguishing skilled labor, unskilled labor, and capital. Environmental regulations are then shown to be neither statistically nor economically a significant determinant of the location behavior of French firms.

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File URL: http://le.uwpress.org/cgi/reprint/84/3/382
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Publisher Info
Article provided by University of Wisconsin Press in its journal Land Economics.

Volume (Year): 84 (2008)
Issue (Month): 3 ()
Pages: 382-395
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Handle: RePEc:uwp:landec:v:84:y:2008:i:3:p:382-395

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Find related papers by JEL classification:
R38 - Urban, Rural, and Regional Economics - - Production Analysis and Firm Location - - - Government Policies; Regulatory Policies
Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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