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Flip Side of the Pollution Haven: Do Export Destinations Matter?

Author

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  • Svetlana Batrakova

    (University College Dublin)

Abstract

This paper looks at a reverse side of the pollution haven argument by answering a question on whether environmental regulations of the destination, rather than source countries play a role. The study utilises a firm-level dataset with aggregate export destinations of Europe and rest of the world (ROW) to establish whether a firm adjusts its energy use in response to a decision to start exporting to a more (Europe) or a less (ROW) regulated destination. Although on average, no energy adjustments are found for these destinations, focusing on the most polluting industries or the most energy-intensive firms reveals that firms' decision to start exporting to Europe brings about significant energy improvements, unlike a decision to start exporting to the ROW. Further estimations suggest that no adjustments found for firms exporting to the ROW are consistent with exporting to non-OECD region.

Suggested Citation

  • Svetlana Batrakova, 2011. "Flip Side of the Pollution Haven: Do Export Destinations Matter?," Working Papers 201101, School of Economics, University College Dublin.
    • Handle: RePEc:ucn:wpaper:201101
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    File URL: http://www.ucd.ie/t4cms/WP11_01.pdf
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    References listed on IDEAS

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    1. Roy, Jayjit & Yasar, Mahmut, 2015. "Energy efficiency and exporting: Evidence from firm-level data," Energy Economics, Elsevier, vol. 52(PA), pages 127-135.

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