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The Pollution Haven Hypothesis: A Geographic Economy Model in a Comparative Study

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  • Natalia Zugravu

    (CES - Université Paris-I Panthéon Sorbonne)

  • Sonia Ben Kheder

    (CES - Université Paris-I Panthéon Sorbonne)

Abstract

Although based on theoretical foundations, the pollution haven hypothesis has never been clearly proven empirically. In this study, we re-examine this hypothesis by a fresh take on both its theoretical and empirical aspects. While applying a geographic economy model on French firm-level data, we confirm the hypothesis for the global sample. Through sensitivity analysis, we validate it for Central and Eastern European countries, emerging and high-income OECD countries, but not for the major part of the Commonwealth of Independent States countries. Finally, we show that the pollution haven hypothesis is confirmed in the strongest manner for emerging economies.

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Paper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2008.73.

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Date of creation: Sep 2008
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Handle: RePEc:fem:femwpa:2008.73

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Keywords: FDI; Environmental Regulation; Economic Geography; Pollution Haven Hypothesis;

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Cited by:
  1. John Feddersen, 2012. "Why we can't confirm the pollution haven hypothesis: A model of carbon leakage with agglomeration," Economics Series Working Papers 613, University of Oxford, Department of Economics.
  2. Martin F. Quaas & Sjak Smulders, 2008. "Pollution and the Efficiency of Urban Growth," Working Papers, Fondazione Eni Enrico Mattei 2008.75, Fondazione Eni Enrico Mattei.
  3. Efthymia Kyriakopoulou & Anastasios Xepapadeas, . "Environmental Policy, Spatial Spillovers and the Emergence of Economic Agglomerations," DEOS Working Papers 1018, Athens University of Economics and Business.

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