Exporters and the environment

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 between export orientation, import competition and pollution emissions. I find a robust relationship between international trade and pollution levels. Exporters emit 9% to 13% less after controlling for output, but there 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 US.

The effects of import competition on health in the local economy

“…There are also competing channels through which decreased local economic activity can affect health through public goods. In addition to less driving, air quality improves if polluting firms shut down (Holladay, ). Feler and Senses () show that import competition depresses spending on public welfare and housing.…”

Energy efficiency and exporting: Evidence from firm-level data

“…Second, and related to the previous point, firms may select into exporting on the basis of unobservable (to the econometrician) factors such as research and development (R&D) activity, training and experience of chief executive officers, management quality, creditworthiness, communication with foreign markets, export spillovers and congestions, and customer preferences across destination countries (e.g., Alvarez and López, 2008;Bao et al, 2014;Barrios et al, 2003;Batrakova, 2011;Batrakova and Davies, 2012;Blalock and Gertler, 2004;Cole et al, 2008;Holladay, 2015;Leonidou, 2004;Manova, 2013). In other words, such factors are plausibly associated with exporting behavior as well as energy use.…”

“…More recently, Holladay (2015) utilizes establishment-level data from the United States Environmental Protection Agency's Toxics Release Inventory Program and finds exporting to be associated with lower pollution emissions as well as emissions that are less toxic. In a similar vein, Forslid et al (2015) rely on firm-level data from Sweden and find exporting to be negatively related to emissions of sulfur dioxide, carbon dioxide, and nitrogen oxide.…”

“…Nonetheless, as noted by the authors, this strategy does not control for unobserved firm characteristics that are time varying. In a similar vein, due to data constraints, Holladay (2015) refrains from identifying the causal mechanism by which exporters are found to be less polluting. That said, Girma and Hanley (2015) pursue an instrumental variables (IV) approach.…”

Who invests more in advanced abatement technology? Theory and evidence

“… There are a few firm‐level empirical studies in trade literature that compare exporters and non‐exporters with regard to their environmental performance. According to these studies, exporters’ emission intensity is generally lower than that of non‐exporters (e.g., Holladay ). …”