Flip Side of the Pollution Haven: Do Export Destinations Matter?
AbstractThis paper looks at a reverse side of the pollution haven argument by answering a question on whether environmental regulations of the destination, rather than source countries play a role. The study utilises a firm-level dataset with aggregate export destinations of Europe and rest of the world (ROW) to establish whether a firm adjusts its energy use in response to a decision to start exporting to a more (Europe) or a less (ROW) regulated destination. Although on average, no energy adjustments are found for these destinations, focusing on the most polluting industries or the most energy-intensive firms reveals that firms' decision to start exporting to Europe brings about significant energy improvements, unlike a decision to start exporting to the ROW. Further estimations suggest that no adjustments found for firms exporting to the ROW are consistent with exporting to non-OECD region.
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Bibliographic InfoPaper provided by School Of Economics, University College Dublin in its series Working Papers with number 201101.
Date of creation: 21 Jan 2011
Date of revision:
Export destinations; Energy; Firm level; Regulations;
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