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National Emissions Standards, Pollution Havens, and Global Greenhouse Gas Emissions

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  • Shane Sanders
  • Abhinav Alakshendra
  • Bhavneet Walia

Abstract

The present study shows that the availability of “pollution havens” can negate the effect of national legislation that tightens industrial greenhouse gas emission standards. In the perverse case, a unilateral tightening of said standards in Country A (a country with relatively stringent industrial emission standards) causes a representative multinational firm to emit more units of greenhouse gas in its global production. The article highlights the potential perils of unilateral action on environmental issues that are global in nature.

Suggested Citation

  • Shane Sanders & Abhinav Alakshendra & Bhavneet Walia, 2014. "National Emissions Standards, Pollution Havens, and Global Greenhouse Gas Emissions," American Journal of Economics and Sociology, Wiley Blackwell, vol. 73(2), pages 353-368, April.
    • Handle: RePEc:bla:ajecsc:v:73:y:2014:i:2:p:353-368
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    References listed on IDEAS

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    1. Judith M. Dean & Mary E. Lovely & Hua Wang, 2017. "Are foreign investors attracted to weak environmental regulations? Evaluating the evidence from China," World Scientific Book Chapters, in: Mary E Lovely (ed.), International Economic Integration and Domestic Performance, chapter 9, pages 155-167, World Scientific Publishing Co. Pte. Ltd..
    2. Jean-Marie Grether & Jaime de Melo, 2004. "Globalization and Dirty Industries: Do Pollution Havens Matter?," NBER Chapters, in: Challenges to Globalization: Analyzing the Economics, pages 167-203, National Bureau of Economic Research, Inc.
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    5. Edward Manderson & Richard Kneller, 2012. "Environmental Regulations, Outward FDI and Heterogeneous Firms: Are Countries Used as Pollution Havens?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 51(3), pages 317-352, March.
    6. Zeng, Dao-Zhi & Zhao, Laixun, 2009. "Pollution havens and industrial agglomeration," Journal of Environmental Economics and Management, Elsevier, vol. 58(2), pages 141-153, September.
    7. Levinson, Arik, 1996. "Environmental regulations and manufacturers' location choices: Evidence from the Census of Manufactures," Journal of Public Economics, Elsevier, vol. 62(1-2), pages 5-29, October.
    8. Yuquing Xing & Charles Kolstad, 2002. "Do Lax Environmental Regulations Attract Foreign Investment?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 21(1), pages 1-22, January.
    9. Cole, Matthew A. & Fredriksson, Per G., 2009. "Institutionalized pollution havens," Ecological Economics, Elsevier, vol. 68(4), pages 1239-1256, February.
    10. Andreas Waldkirch & Munisamy Gopinath, 2008. "Pollution Control and Foreign Direct Investment in Mexico: An Industry-Level Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 41(3), pages 289-313, November.
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    Cited by:

    1. Shane Sanders, 2023. "Environmental Status Goods and Market-Based Conservation: An Arm of Ostrom’s Polycentric Approach?," Sustainability, MDPI, vol. 15(5), pages 1-9, February.
    2. Richard J. Cebula & James E. Payne, 2014. "Introduction: Environmental Sustainability Symposium," American Journal of Economics and Sociology, Wiley Blackwell, vol. 73(2), pages 295-298, April.

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