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Trade, Environmental Regulations and Industrial Mobility: An Industry-Level Study of Japan

Author

Listed:
  • Matthew A. Cole

    (Department of Economics, University of Birmingham, UK)

  • Robert J.R. Elliott

    (Department of Economics, University of Birmingham, UK)

  • Toshihiro Okubo

    (Research Institute for Economics & Business Administration (RIEB), Kobe University, Japan)

Abstract

This paper contributes to the small but growing body of literature which tries to explain why, despite the predictions of some theoretical studies, empirical support for the pollution haven hypothesis remains limited. We break from the previous literature, which tends to concentrate on US trade patterns, and focus on Japan. In common with Ederington et al.'s (2005) US study, we show that pollution haven effects are stronger and more discernible when trade occurs with developing countries, in industries with the greatest environmental costs and when the geographical immobility of an industry is accounted for. We also go one step further and show that our findings relate not only to environmental regulations but also to industrial regulations more generally.

Suggested Citation

  • Matthew A. Cole & Robert J.R. Elliott & Toshihiro Okubo, 2010. "Trade, Environmental Regulations and Industrial Mobility: An Industry-Level Study of Japan," Discussion Paper Series DP2010-22, Research Institute for Economics & Business Administration, Kobe University.
    • Handle: RePEc:kob:dpaper:dp2010-22
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    File URL: https://www.rieb.kobe-u.ac.jp/academic/ra/dp/English/DP2010-22.pdf
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    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • 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
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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