AbstractRecent years have witnessed a dramatic increase in the number of firms shifting stages of their production processes overseas. In this paper we investigate whether firms outsource the dirtier stages of production to minimise domestic environmental regulation costs - a process broadly consistent with the pollution haven hypothesis. We develop a theoretical model of environmental outsourcing that focuses on the roles played by firm size and productivity, transport costs and environmental regulations. We test the model's predictions using a firm-level data set for Japan. We find evidence of an 'environmental outsourcing' effect although this is mitigated by transport costs and other factors related to dirty good production.
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 InfoPaper provided by Research Institute of Economy, Trade and Industry (RIETI) in its series Discussion papers with number 10055.
Length: 38 pages
Date of creation: Oct 2010
Date of revision:
Contact details of provider:
Postal: 11th floor, Annex, Ministry of Economy, Trade and Industry (METI) 1-3-1, Kasumigaseki Chiyoda-ku, Tokyo, 100-8901
Web page: http://www.rieti.go.jp/
More information through EDIRC
Other versions of this item:
- F18 - International Economics - - Trade - - - Trade and Environment
- L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
- L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
- 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
- R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-10-23 (All new papers)
- NEP-ENV-2010-10-23 (Environmental Economics)
- NEP-REG-2010-10-23 (Regulation)
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.:
- Tomiura, Eiichi, 2005.
"Foreign outsourcing and firm-level characteristics: Evidence from Japanese manufacturers,"
Journal of the Japanese and International Economies,
Elsevier, vol. 19(2), pages 255-271, June.
- Eiichi Tomiura, 2004. "Foreign outsourcing and firm-level characteristics: evidence from Japanese manufacturers," Hi-Stat Discussion Paper Series d04-64, Institute of Economic Research, Hitotsubashi University.
- Tomiura, Eiichi, 2007.
"Foreign outsourcing, exporting, and FDI: A productivity comparison at the firm level,"
Journal of International Economics,
Elsevier, vol. 72(1), pages 113-127, May.
- Eiichi Tomiura, 2005. "Foreign Outsourcing, Exporting, and FDI: A Productivity Comparison at the Firm Level," Discussion Paper Series 168, Research Institute for Economics & Business Administration, Kobe University.
- Eiichi Tomiura, 2008. "Foreign outsourcing and the product cycle: evidence from micro data," Applied Economics Letters, Taylor & Francis Journals, vol. 15(13), pages 1019-1022.
- Ciriaci, Daria & Palma, Daniela, 2010. "Geography, environmental efficiency and Italian economic growth: a spatially-adapted Environmental Kuznets Curve," MPRA Paper 22899, University Library of Munich, Germany.
- Carson, Richard T. & Hanemann, W. Michael & Kopp, Raymond J. & Krosnick, Jon A. & Mitchell, Robert C. & Presser, Stanley & Ruud, Paul A. & Smith, V. Kerry, 1995.
"Temporal Reliability of Estimates from Contingent Valuation,"
95-05, Duke University, Department of Economics.
- Richard T. Carson & W. Michael Hanemann, & Raymond J. Kopp & Jon A. Krosnick & Robert C. Mitchell & Stanley Presser & Paul A. Rudd & V. Kerry Smith & Michael Conaway & Kerry Martin, 1997. "Temporal Reliability of Estimates from Contingent Valuation," Land Economics, University of Wisconsin Press, vol. 73(2), pages 151-163.
- Kopp, Raymond & Smith, V. Kerry & Mitchell, Robert & Presser, Stanley & Ruud, Paul & Hanemann, W. Michael & Krosnick, Jon & Carson, Richard, 1995. "Temporal Reliability of Estimates from Contingent Valuation," Discussion Papers dp-95-37, Resources For the Future.
- Forslid, Rikard & Okubo, Toshihiro & Ulltveit-Moe, Karen-Helene, 2011. "International trade, CO2 emissions and heterogeneous firms," CEPR Discussion Papers 8583, C.E.P.R. Discussion Papers.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (NUKATANI Sorahiko).
If references are entirely missing, you can add them using this form.