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Do Environmental Regulations Influence the Location Behavior of French Firms?

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  • Sébastien Raspiller
  • Nicolas Riedinger

Abstract

This paper investigates the impact of environmental regulations on the location choices made by firms for their industrial activities, using a sample of newly appeared imports of French firms from foreign industrial subsidiaries. A simple static model based on the production cost minimization is developed in order to control for heterogeneous factor costs within countries, distinguishing skilled labor, unskilled labor, and capital. Environmental regulations are then shown to be neither statistically nor economically a significant determinant of the location behavior of French firms.

Suggested Citation

  • Sébastien Raspiller & Nicolas Riedinger, 2008. "Do Environmental Regulations Influence the Location Behavior of French Firms?," Land Economics, University of Wisconsin Press, vol. 84(3), pages 382-395.
  • Handle: RePEc:uwp:landec:v:84:y:2008:i:3:p:382-395
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    References listed on IDEAS

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    1. Eskeland, Gunnar S. & Harrison, Ann E., 2003. "Moving to greener pastures? Multinationals and the pollution haven hypothesis," Journal of Development Economics, Elsevier, vol. 70(1), pages 1-23, February.
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    Cited by:

    1. repec:oup:renvpo:v:11:y:2017:i:2:p:183-206. is not listed on IDEAS
    2. Fabrice DARRIGUES & Jean-Marc MONTAUD, 2010. "Trade liberalization, environmental regulation and self-regulation of multinational firms," Working Papers 2010-2011_5, CATT - UPPA - Université de Pau et des Pays de l'Adour, revised Nov 2010.
    3. Zhaohui Chong & Chenglin Qin & Xinyue Ye, 2016. "Environmental Regulation, Economic Network and Sustainable Growth of Urban Agglomerations in China," Sustainability, MDPI, Open Access Journal, vol. 8(5), pages 1-21, May.
    4. repec:gam:jsusta:v:8:y:2016:i:5:p:467:d:69798 is not listed on IDEAS
    5. Ben Kheder, Sonia & Zugravu, Natalia, 2012. "Environmental regulation and French firms location abroad: An economic geography model in an international comparative study," Ecological Economics, Elsevier, vol. 77(C), pages 48-61.
    6. Thi Anh Dam & Markus Pasche & Niclas Werlich, 2017. "Trade Patterns and the Ecological Footprint - a theory-based Empirical Approach," Jena Economic Research Papers 2017-005, Friedrich-Schiller-University Jena.

    More about this item

    JEL classification:

    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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