IDEAS home Printed from https://ideas.repec.org/p/unm/unuint/199801.html
   My bibliography  Save this paper

Environmental Regulation and International Competitiveness: A Review of Literature and Some European Evidence

Author

Listed:
  • Jenkins, Rhys

    (School of Development Studies, University of East Anglia)

Abstract

The impact of environmental regulation on competitiveness is a major issue of concern to policy makers. It has also been the subject of considerable academic debate in the last few years between those who see an inherent conflict between the protection of the environment and international competitiveness, and those who believe that environmental regulation can in fact improve economic performance. The efforts to clarify the linkages between environmental regulation and competitiveness are still rudimentary, and it has not been possible to determine conclusively which are the main variables which intervene in the relationship. The evidence presented in this paper illustrate that environmental regulation is only one of a number of factors which may have an impact on competitiveness and a full analysis would require a much more detail consideration of the impact of other factors. It is suggested that this reflects the differing impact which environmental regulation may have on economic performance under different circumstances. For instance at the firm level the impact on profitability may be different between large firms, which can take advantage of economies of scale in waste treatment, and small firms where large cost increases may result. Similarly at the industry level there is apparently no general relationship between environmental regulation and competitiveness. Some industries which have high pollution abatement costs appear to be losing competitiveness within the European Union, while others have been able to maintain or even gain competitiveness. The impact of environmental regulation on competitiveness may differ according to certain structural or market characteristics of the industries concerned.

Suggested Citation

  • Jenkins, Rhys, 1998. "Environmental Regulation and International Competitiveness: A Review of Literature and Some European Evidence," UNU-INTECH Discussion Paper Series 01, United Nations University - INTECH.
  • Handle: RePEc:unm:unuint:199801
    as

    Download full text from publisher

    File URL: http://www.intech.unu.edu/publications/discussion-papers/9801.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Grossman, G.M & Krueger, A.B., 1991. "Environmental Impacts of a North American Free Trade Agreement," Papers 158, Princeton, Woodrow Wilson School - Public and International Affairs.
    2. Adam B. Jaffe et al., 1995. "Environmental Regulation and the Competitiveness of U.S. Manufacturing: What Does the Evidence Tell Us?," Journal of Economic Literature, American Economic Association, vol. 33(1), pages 132-163, March.
    3. H. David Robison, 1988. "Industrial Pollution Abatement: The Impact on Balance of Trade," Canadian Journal of Economics, Canadian Economics Association, vol. 21(1), pages 187-199, February.
    4. Wayne B. Gray & Ronald J. Shadbegian, 1993. "Environmental Regulation and Manufacturing Productivity at the Plant Level," NBER Working Papers 4321, National Bureau of Economic Research, Inc.
    5. Karen Palmer & Wallace E. Oates & Paul R. Portney, 1995. "Tightening Environmental Standards: The Benefit-Cost or the No-Cost Paradigm?," Journal of Economic Perspectives, American Economic Association, vol. 9(4), pages 119-132, Fall.
    6. Low, P., 1992. "International Trade and the Environment," World Bank - Discussion Papers 159, World Bank.
    7. Tobey, James A, 1990. "The Effects of Domestic Environmental Policies on Patterns of World Trade: An Empirical Test," Kyklos, Wiley Blackwell, vol. 43(2), pages 191-209.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tilmann Rave & Ursula Triebswetter, 2006. "Ökonomische Auswirkungen umweltpolitischer Regulierungen : eine Machbarkeitsstudie vor dem Hintergrund der Anforderungen der Richtlinie 96/61/EG über die integrierte Vermeidung und Verminderung von Um," ifo Forschungsberichte, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 30, October.
    2. Ashfaqul Babool & Michael Reed, 2010. "The impact of environmental policy on international competitiveness in manufacturing," Applied Economics, Taylor & Francis Journals, vol. 42(18), pages 2317-2326.
    3. Dannenberg, Astrid & Mennel, Tim & Moslener, Ulf, 2008. "What does Europe pay for clean energy?--Review of macroeconomic simulation studies," Energy Policy, Elsevier, vol. 36(4), pages 1318-1330, April.
    4. Li, Hong & Huang, Chengming & Yang, Bill Z., 2011. "Environmental Regulation, Business Innovation and International Competitiveness - Regolazione ambientale, innovazioni d’impresa e competitività internazionale," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 64(1), pages 115-128.
    5. Babool, Md. Ashfaqul Islam & Reed, Michael R., 2005. "International Competitiveness and Environmental Regulations," 2005 Annual meeting, July 24-27, Providence, RI 19496, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Jared C. Carbone & Nicholas Rivers, 2014. "Climate policy and competitiveness: Policy guidance and quantitative evidence," Working Papers 2014-05, Colorado School of Mines, Division of Economics and Business.
    7. Telle, Kjetil & Larsson, Jan, 2007. "Do environmental regulations hamper productivity growth? How accounting for improvements of plants' environmental performance can change the conclusion," Ecological Economics, Elsevier, vol. 61(2-3), pages 438-445, March.
    8. Christoph Böhringer & Victoria Alexeeva-Talebi, 2011. "Unilateral climate policy and competitiveness: The implications of differential emission pricing," Working Papers V-338-11, University of Oldenburg, Department of Economics, revised Jun 2011.
    9. Peterson, Sonja & Klepper, Gernot, 2008. "The competitiveness effects of the EU climate policy," Kiel Working Papers 1464, Kiel Institute for the World Economy (IfW).
    10. Kjetil Telle & Jan Larsson, 2004. "Do environmental regulations hamper productivity growth? How accounting for improvements of firms' environmental performance can change the conclusion," Discussion Papers 374, Statistics Norway, Research Department.

    More about this item

    Keywords

    Environmental Legislation; Conpetitiveness;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:unm:unuint:199801. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ad Notten). General contact details of provider: http://edirc.repec.org/data/meritnl.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.