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Are Exporters More Environmentally Friendly than Non-Exporters? Theory and Evidence

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  • Cui, Jingbo
  • Lapan, Harvey
  • Moschini, GianCarlo

Abstract

This paper studies the firm-level relationship between decision to export and environmental performance. To guide the empirical work, we introduce environmental pollution and technology choice into a trade model with heterogeneous firms. The model predicts that a productive firm is more likely to adopt emission-saving technology and to export. Using facility-level criteria air emission data in the U.S. manufacturing industry, for a variety of pollutants, empirical tests are supportive of our two primary theoretical predictions. First, facility productivity is negatively correlated with emission intensity, measured by emissions per value of sales. Second, conditional on the estimated facility productivity and the facility's exposure to environmental regulation, exporters have lower emission per value of sales than non-exporters within the same industry.

Suggested Citation

  • Cui, Jingbo & Lapan, Harvey & Moschini, GianCarlo, 2012. "Are Exporters More Environmentally Friendly than Non-Exporters? Theory and Evidence," Staff General Research Papers Archive 35549, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genres:35549
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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