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

Listed author(s):
  • John P. Tang

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.

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File URL: https://www.cbe.anu.edu.au/researchpapers/econ/wp623.pdf
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Paper provided by Australian National University, College of Business and Economics, School of Economics in its series ANU Working Papers in Economics and Econometrics with number 2015-623.

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Date of creation: Feb 2015
Handle: RePEc:acb:cbeeco:2015-623
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