AbstractIn recent years there has been 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 and do find evidence of an 'environmental outsourcing' effect.
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Bibliographic InfoPaper provided by Research Institute for Economics & Business Administration, Kobe University in its series Discussion Paper Series with number DP2011-12.
Length: 40 pages
Date of creation: Mar 2011
Date of revision:
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Environmental regulations; Trade; Outsourcing; Firm-level.;
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-2011-04-02 (All new papers)
- NEP-ENV-2011-04-02 (Environmental Economics)
- NEP-INT-2011-04-02 (International Trade)
- NEP-REG-2011-04-02 (Regulation)
- NEP-RES-2011-04-02 (Resource Economics)
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.:
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Hi-Stat Discussion Paper Series
d04-64, Institute of Economic Research, Hitotsubashi University.
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- 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.
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