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Flip Side of the Pollution Haven: Do Export Destinations Matter?

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Author Info

  • Svetlana Batrakova

    (University College Dublin)

Abstract

This 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 Info

Paper provided by School Of Economics, University College Dublin in its series Working Papers with number 201101.

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Length: 24
Date of creation: 21 Jan 2011
Date of revision:
Handle: RePEc:ucn:wpaper:201101

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Related research

Keywords: Export destinations; Energy; Firm level; Regulations;

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