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Trade in pollutive industries and the stringency of environmental regulations

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  • Matthias Busse
  • Magdalene Silberberger

Abstract

This article analyses the impact of trade in pollution-intensive industries on the stringency of environmental regulation. Using system Generalized Method of Moments (GMM) regressions for a panel of 92 countries and the period 1998 to 2007, we find that an increase in net exports of pollution-intensive goods leads to a lowering of the stringency of environmental regulations.

Suggested Citation

  • Matthias Busse & Magdalene Silberberger, 2013. "Trade in pollutive industries and the stringency of environmental regulations," Applied Economics Letters, Taylor & Francis Journals, vol. 20(4), pages 320-323, March.
    • Handle: RePEc:taf:apeclt:v:20:y:2013:i:4:p:320-323
    DOI: 10.1080/13504851.2012.695068
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    References listed on IDEAS

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    1. Brian R. Copeland & M. Scott Taylor, 2004. "Trade, Growth, and the Environment," Journal of Economic Literature, American Economic Association, vol. 42(1), pages 7-71, March.
    2. Damania, Richard & Fredriksson, Per G. & List, John A., 2003. "Trade liberalization, corruption, and environmental policy formation: theory and evidence," Journal of Environmental Economics and Management, Elsevier, vol. 46(3), pages 490-512, November.
    3. Fredriksson, Per G. & Svensson, Jakob, 2003. "Political instability, corruption and policy formation: the case of environmental policy," Journal of Public Economics, Elsevier, vol. 87(7-8), pages 1383-1405, August.
    4. Dean, Judith M., 1992. "Trade and the environment : a survey of the literature," Policy Research Working Paper Series 966, The World Bank.
    5. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
    6. Schleich, Joachim, 1999. "Environmental quality with endogenous domestic and trade policies1," European Journal of Political Economy, Elsevier, vol. 15(1), pages 53-71, March.
    7. Windmeijer, Frank, 2005. "A finite sample correction for the variance of linear efficient two-step GMM estimators," Journal of Econometrics, Elsevier, vol. 126(1), pages 25-51, May.
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    Cited by:

    1. Per G. Fredriksson & Xenia Matschke, 2016. "Trade Liberalization and Environmental Taxation in Federal Systems," Scandinavian Journal of Economics, Wiley Blackwell, vol. 118(1), pages 150-167, January.
    2. Emma Aisbett & Magdalene Silberberger, 2021. "Tariff liberalization and product standards: Regulatory chill and race to the bottom?," Regulation & Governance, John Wiley & Sons, vol. 15(3), pages 987-1006, July.

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