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Exporters and the Environment

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Abstract

This paper documents a relationship between international trade and environmental performance at the plant level. Using a panel of establishment-level data from 1990-2006, I estimate the relationship be- tween export orientation, import competition and pollution emissions. I find a robust relationship between international trade and pollution levels. Exporters emit 9-13% less after controlling for output, but their is significant heterogeneity across industries. Import competition is associated with the exit of the smallest, most pollution intensive plants. There is no evidence that this result is caused by polluting firms relocating to countries with low levels of environmental regulation and importing back into the U.S.

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  • J. Scott Holladay, 2015. "Exporters and the Environment," Working Papers 2015-03, University of Tennessee, Department of Economics.
    • Handle: RePEc:ten:wpaper:2015-03
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    File URL: http://web.utk.edu/~jhollad3/Exporters_Environment.pdf
    File Function: First version, 2015
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    JEL classification:

    • F1 - International Economics - - Trade
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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