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The effect of EU environmental regulation on international trade : restriction of hazardous substance as a trade barrier


  • Honda, Keiichiro


In 2003 the Restriction of Hazardous Substances (RoHS) was established in the EU, which limited the trade of machinery, electrical and electronic equipment that have at least one of the substances considered hazardous under RoHS directive. Since countries trading with the EU must comply with this new regulation, it is expected a decrease in value of imports to the EU. In this paper, it is followed the procedures used in Heckman (1979), as well as the extended procedure suggested by Helpman, Melitz, and Rubinstein (2008) to ascertain the effects on the persistence of trade and values of trade.

Suggested Citation

  • Honda, Keiichiro, 2012. "The effect of EU environmental regulation on international trade : restriction of hazardous substance as a trade barrier," IDE Discussion Papers 341, Institute of Developing Economies, Japan External Trade Organization(JETRO).
  • Handle: RePEc:jet:dpaper:dpaper341

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    References listed on IDEAS

    1. Czubala, Witold & Shepherd, Ben & Wilson, John S., 2007. "Help or hindrance ? the impact of harmonized standards on african exports," Policy Research Working Paper Series 4400, The World Bank.
    2. Anne-Célia Disdier & Lionel Fontagné & Mondher Mimouni, 2008. "The Impact of Regulations on Agricultural Trade: Evidence from the SPS and TBT Agreements," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(2), pages 336-350.
    3. Lionel Fontagné & Mondher Mimouni & Jean-Michel Pasteels, 2005. "Estimating the Impact of Environmental SPS and TBT on International Trade," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00270511, HAL.
    4. Elhanan Helpman & Marc Melitz & Yona Rubinstein, 2008. "Estimating Trade Flows: Trading Partners and Trading Volumes," The Quarterly Journal of Economics, Oxford University Press, vol. 123(2), pages 441-487.
    5. Swann, Peter & Temple, Paul & Shurmer, Mark, 1996. "Standards and Trade Performance: The UK Experience," Economic Journal, Royal Economic Society, vol. 106(438), pages 1297-1313, September.
    6. Kellenberg, Derek K., 2009. "An empirical investigation of the pollution haven effect with strategic environment and trade policy," Journal of International Economics, Elsevier, vol. 78(2), pages 242-255, July.
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    Cited by:

    1. Otsuki, Tsunehiro & Michida, Etsuyo & Nabeshima, Kaoru & Ueki, Yasushi, 2014. "Estimating the effect of chemical safety standards on firm performance in Malaysia and Vietnam," IDE Discussion Papers 455, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    2. Otsuki, Tsunehiro & Honda, Keiichiro & Michida, Etsuyo & Nabeshima, Kaoru & Ueki, Yasushi, 2015. "Effects of RoHs and REACH regulations on firm-level production and export, and the role of global value chains : the cases of Malaysia and Vietnam," IDE Discussion Papers 526, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    3. Michida, Etsuyo, 2014. "The policy impact of product-related environmental regulations in Asia," IDE Discussion Papers 451, Institute of Developing Economies, Japan External Trade Organization(JETRO).

    More about this item


    Europe; Trade problem; International trade; Environmental protection; The RoHS directive; Harmonized standards; Gravity model; Intensive and extensive margin; Sample selection and firm heterogeneity;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F18 - International Economics - - Trade - - - Trade and Environment
    • 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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