Pollution, welfare, and environmental policy in the theory of Comparative Advantage

Pethig, Rüdiger

doi:10.1016/0095-0696(76)90031-0

Cited by 337 publications

(167 citation statements)

References 9 publications

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“…The pollution haven hypothesis is now a cornerstone of the debate on globalisation and the environment. As formulated by Pethig (1976) and McGuire (1982) this hypothesis postulates that opening up to trade allows pollution-intensive industries to move to countries with weaker environmental regulations. This results in a race to the bottom in overall environmental standards and increased pollution levels.…”

Section: Introductionmentioning

confidence: 99%

Is there an environmental benefit to being an exporter? Evidence from firm-level data

Batrakova

Davies

2012

Rev World Econ

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One of the greatest concerns over globalisation is its impact on the environment. This paper contributes to this debate by analysing the consequences of becoming an exporter on a firm's energy consumption. We show both theoretically and empirically that for low fuel intensity firms exporting status is associated with higher fuel consumption while for high fuel intensity firms exporting is results in decreased fuel consumption. Further analysis reveals that higher fuel consumption of low fuel intensity firms occurs after exporting, perhaps as a response to increased production. In contrast, firms using relatively large quantities of fuel decrease their energy use after exporting, perhaps by adopting more fuel-efficient technology. These results indicate that the use of aggregate data, as is the case in almost all studies of trade and the environment, is likely to conceal important connections between the two.

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Section: Introductionmentioning

confidence: 99%

Is there an environmental benefit to being an exporter? Evidence from firm-level data

Batrakova

Davies

2012

Rev World Econ

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“…Neither of these methods has resulted in quantitatively significant or robust evidence that environmental regulations influence trade patterns. However, given the underlying logic of the pollution haven hypothesis, researchers continue to attempt to explain why effects of environmental regulation on 1 See Pethig (1976), Siebert (1977), McGuire (1982), and Copeland and Taylor (1994). competitiveness are so difficult to detect.…”

Section: Introductionmentioning

confidence: 99%

Footloose and Pollution-Free

Ederington¹,

Levinson²,

Minier³

2003

107

159

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In numerous studies, economists have found little empirical evidence that environmental regulations affect trade flows. In this paper, we propose and test several common explanations for why the effect of environmental regulations on trade may be difficult to detect. We demonstrate that while most trade occurs among industrialized economies, environmental regulations have stronger effects on trade between industrialized and developing economies. We find that for most industries, pollution abatement costs are a small component of total costs, and are unrelated to trade flows. In addition, we show that those industries with the largest pollution abatement costs also happen to be the least geographically mobile, or "footloose." After accounting for these distinctions, we measure a significant effect of pollution abatement costs on imports from developing countries, and in pollution-intensive, footloose industries.

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“…The Ricardian trade model has been used by Pethig (1976), the Heckscher-Ohlin model has been used in different ways by Pethig (1976), McGuire (1982) and Merrified (1988) and the Chamberlin-Krugman model has been applied by Soete and Ziesemer (1997).…”

Section: Theoretical Structurementioning

confidence: 99%

Effects of the Enlargement of EU on Trade and the Environment

Zhu

Ierland

2001

SSRN Journal

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Pollution, welfare, and environmental policy in the theory of Comparative Advantage

Cited by 337 publications

References 9 publications

Is there an environmental benefit to being an exporter? Evidence from firm-level data

Is there an environmental benefit to being an exporter? Evidence from firm-level data

Footloose and Pollution-Free

Effects of the Enlargement of EU on Trade and the Environment

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