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Pollution Havens and the Trade in Toxic Chemicals: Evidence from U.S. Trade Flows

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  • John P. Tang

Abstract

National registries of toxic chemical emissions and facilities are increasingly used to raise public awareness of potential health hazards in local areas, but an unintended consequence may be the offshoring of production to less regulated countries. Using disaggregated U.S. trade data, this study examines the impact of registry listing on subsequent bilateral trade flows. Estimates from a difference-in-differences model indicate a significant shift toward imports from poorer countries following registry listing. Assuming that environmental protection is a normal good, this result suggests the emergence of pollution havens due to more stringent U.S. environmental regulation.

Suggested Citation

  • John P. Tang, 2015. "Pollution Havens and the Trade in Toxic Chemicals: Evidence from U.S. Trade Flows," ANU Working Papers in Economics and Econometrics 2015-623, Australian National University, College of Business and Economics, School of Economics.
  • Handle: RePEc:acb:cbeeco:2015-623
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    File URL: https://www.cbe.anu.edu.au/researchpapers/econ/wp623.pdf
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    1. repec:eee:eneeco:v:64:y:2017:i:c:p:13-23 is not listed on IDEAS
    2. Markusen, James R., 2012. "Per-Capita Income as a Determinant of International Trade and Environmental Policies," Discussion Papers 2013-06, Graduate School of Economics, Hitotsubashi University.
    3. repec:eee:enepol:v:113:y:2018:i:c:p:356-367 is not listed on IDEAS
    4. Michael Schymura & Andreas Löschel, 2012. "Trade and the Environment: An Application of the WIOD Database," EcoMod2012 3948, EcoMod.
    5. Balsalobre-Lorente, Daniel & Shahbaz, Muhammad & Roubaud, David & Farhani, Sahbi, 2018. "How economic growth, renewable electricity and natural resources contribute to CO2 emissions?," Energy Policy, Elsevier, vol. 113(C), pages 356-367.
    6. James R. Markusen, 2014. "Per-Capital Income as a Determinant of International Trade and Environment Policies," CESifo Working Paper Series 4618, CESifo Group Munich.

    More about this item

    Keywords

    pollution haven; environmental Kuznets curve; production offshoring; Toxics Release Inventory; pollution release and transfer register; Porter hypothesis;

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