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The Challenge of Analysing the Impact of Environmental Policy on Competitiveness - L’analisi dell’impatto della politica ambientale sulla competitività: una sfida ancora aperta

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  • Cavalletti, Barbara

    (Università degli Studi di Genova, Scuola di Scienze Sociali, Dipartimento di Economia (DIEC))

  • Borino, Floriana

    (Università degli Studi di Genova, Scuola di Scienze Sociali, Dipartimento di Economia (DIEC))

Abstract

Despite almost forty years of studies, the debate persists over whether stringent environmental policies negatively affect competitiveness, and whether this effect is strong enough to create “pollution havens” in developing countries. In this paper, some of the policy issues that inspired much of the literature on environmental regulation and competitiveness are described and the main empirical studies are examined. The focus of this paper is to analyse one of the main problem in the empirical testing of the disputed existence of a pollution haven effect (PHE): the measurement of environmental regulatory stringency. By analysing two Chinese provinces, this study shows that differences in institutional development (and thereby in the enforcement of environmental policies) are not properly captured by the proxies of environmental stringency, which are commonly utilised in applied studies. These results challenge the validity of existing empirical PHE tests. - Nonostante quasi quaranta anni di studi, persiste il dibattito circa l’ipotesi che politiche ambientali rigorose influenzino negativamente la competitività e se questo effetto sia abbastanza forte da creare “paradisi dell’inquinamento” nei paesi in via di sviluppo. In questo lavoro sono presentati alcuni dei temi di politica ambientale ed economica che hanno ispirato gran parte della letteratura sul legame tra normativa ambientale e competitività e vengono analizzati i principali studi empirici sul tema. L’obiettivo consiste nel valutare uno degli aspetti più rilevanti e controversi tra quelli che caratterizzano la verifica empirica dell’esistenza di “paradisi dell’inquinamento” (PHE): la misura del rigore della normativa ambientale. Analizzando due province cinesi, questo studio dimostra che le differenze di sviluppo istituzionale (e quindi di applicazione delle politiche ambientali) non sono adeguatamente descritte dalle variabili comunemente utilizzate negli studi empirici per rappresentare il rigore della normativa ambientale. Questi risultati mettono in discussione la validità delle prove empiriche che confermano l’esistenza di PHE.

Suggested Citation

  • Cavalletti, Barbara & Borino, Floriana, 2015. "The Challenge of Analysing the Impact of Environmental Policy on Competitiveness - L’analisi dell’impatto della politica ambientale sulla competitività: una sfida ancora aperta," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 68(2), pages 153-171.
  • Handle: RePEc:ris:ecoint:0749
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    References listed on IDEAS

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    More about this item

    Keywords

    Environmental Regulation; Competitiveness; Pollution Haven;
    All these keywords.

    JEL classification:

    • 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

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