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

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Title: Flip Side of the Pollution Haven: Do Export Destinations Matter?
Authors: Batrakova, Svetlana
Permanent link: http://hdl.handle.net/10197/6376
Date: Jan-2011
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 fi rms' decision to start exporting to Europe brings about signi ficant 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.
Type of material: Working Paper
Publisher: University College Dublin. School of Economics
Keywords: Export destinations;Energy;Firm level;Regulations
Language: en
Status of Item: Not peer reviewed
Appears in Collections:Economics Working Papers & Policy Papers

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