Environmental Valuation & Cost-Benefit News
Unmasking The Pollution Haven Effect
03/13/08
11:04:54 am, by damageva 
, 148 words, 114 views 
Categories: General, Air, U.S., Latin America, Academic Study/Journal Article, Economic Development, Canada, Costs and Benefits
Unmasking The Pollution Haven Effect
Abstract: Arik Levinson and M. Scott Taylor use theory and empirics to examine the effect of environmental regulations on trade flows. A simple model demonstrates how unobserved heterogeneity, endogeneity, and aggregation issues bias standard measurements of this relationship. A reduced-form estimate of the model, using data on U.S. regulations and trade with Canada and Mexico for 130 manufacturing industries from 1977 to 1986, indicates that industries whose abatement costs increased most experienced the largest increases in net imports. For the average industry, the change in net imports we ascribe to regulatory costs amounting to 10% of the total increase in trade volume over the period.
by Arik Levinson and M. Scott Taylor, both of Georgetown University, U.S.A. and University of Calgary, Canada
International Economic Review via Blackwell Publishing www.Blackwell-Synergy.com
Volume 49, Issue 1; February, 2008; Pages 223-254
doi:10.1111/j.1468-2354.2008.00478.x
http://www.blackwell-synergy.com/doi/abs/10.1111/j.1468-2354.2008.00478.x
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