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trade and environmental regulations

Author

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  • Jenny Minier

Abstract

To what extent do environmental regulations affect trade flows? Early cross-sectional studies of the relationship generally found little effect. More recent research that controls for industry heterogeneity, the endogeneity of trade policy, and the type of trade and industry has found sizeable, statistically significant effects of environmental regulations on trade. There is little evidence, however, that production of ‘dirty’ goods has shifted to countries with lax environmental standards.

Suggested Citation

  • Jenny Minier, 2010. "trade and environmental regulations," The New Palgrave Dictionary of Economics, Palgrave Macmillan.
  • Handle: RePEc:pal:dofeco:v:4:year:2010:doi:1931
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    More about this item

    Keywords

    environmental regulations; footloose industries; pollution haven; trade policy;

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment

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