Pollution Haven Effect with Heterogeneous Firms
AbstractI developed a heterogeneous firm model to examine pollution haven effect within the industry. Environmental regulation reduces the number of domestic firms in the industry by forcing the least productive firms out, and shifts the domestic firms into the foreign country. Although there are resource allocations between firms, total welfare is decreasing due to the stringency of regulation. The impact of environmental regulation on the competitiveness is dependent on the relative size of abatement cost to marginal production cost and regulation regimes.
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Bibliographic InfoPaper provided by Agricultural and Applied Economics Association in its series 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. with number 150781.
Date of creation: 2013
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Heterogeneous firms; Pollution Haven Effect; Environmental regulation; Environmental Economics and Policy; Research and Development/Tech Change/Emerging Technologies;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-06-24 (All new papers)
- NEP-ENV-2013-06-24 (Environmental Economics)
- NEP-RES-2013-06-24 (Resource Economics)
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