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Exporting and the Environment: A New Look with Micro-Data

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  • Sourafel Girma
  • Aoife Hanley
  • Felix Tintelnot

Abstract

Previous aggregate studies ignore additional environmental improvements caused by intra industry reallocations to high productivity/ low pollution firms. They also fail to consider potential differences in abatement efforts by exporting status. Our estimation based on UK firm level data from 1998 to 2002 shows that exporters are 7.5 percent more likely to denote their innovation as having a ‘high’ or ‘very high’ environmental effect. Our findings also show that exporters are 17.5 percent more likely, all things equal, to report that their firm’s innovation cuts the cost of energy/ materials. Our results agree with our environment trade model which predicts that exporters amortize the fixed cost of environmental abatement over their wider output base

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Bibliographic Info

Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1423.

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Length: 36 pages
Date of creation: Jun 2008
Date of revision:
Handle: RePEc:kie:kieliw:1423

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Keywords: Exporting; environment; innovation; heterogeneity;

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Cited by:
  1. Prashanth Mahagaonkar & Rainer Schweickert & Aditya S. Chavali, 2009. "Sectoral R&D Intensity and Exchange Rate Volatility: A Panel Study for OECD Countries," Kiel Working Papers 1531, Kiel Institute for the World Economy.
  2. Cui, Jingbo & Lapan, Harvey & Moschini, GianCarlo, 2012. "Are Exporters More Environmentally Friendly than Non-Exporters? Theory and Evidence," Staff General Research Papers, Iowa State University, Department of Economics 35549, Iowa State University, Department of Economics.
  3. Svetlana Batrakova & Ronald Davies, 2010. "Is there an environmental benefit to being an exporter? Evidence from firm level data," The Institute for International Integration Studies Discussion Paper Series, IIIS iiisdp322, IIIS, revised Mar 2010.
  4. Cui, Jingbo & Qian, Hang, 2013. "The Effects of Exports on Facility Environmental Performance: Evidence from a Matching Approach," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C., Agricultural and Applied Economics Association 149550, Agricultural and Applied Economics Association.

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