Unmasking the pollution haven effect
By: Arik Levinson, M. Scott Taylor.
Contributors: Taylor, M. Scott 1960-; National Bureau of Economic Research.
Series: NBER working paper series ;; working paper 10629; Working paper series (National Bureau of Economic Research : Online) ;; working paper no. 10629.
Publisher: National Bureau of Economic Research
Published: 2004
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Subjects: Environmental law -- Economic aspects -- Econometric models.; Commerce -- Econometric models.
Description: "This paper uses both theory and empirical work to examine the effect of environmental regulations on trade flows.  We develop a simple economic model to demonstrate how unobserved heterogeneity, endogeneity and aggregation issues bias measurements of the relationship between regulatory costs and trade.  We apply an estimating equation derived from the model to data on U.S.  regulations and net trade flows among the U.S., Canada, and Mexico, for 130 manufacturing industries from 1977 to 1986.  Our results indicate that industries whose abatement costs increased most experienced the largest increases in net imports.  For the 20 industries hardest hit by regulation, the change in net imports we ascribe to the increase in regulatory costs amounts to more than half of the total increase in trade volume over the period"--National Bureau of Economic Research web site.
Notes: Includes bibliographical references.
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Mode of access: World Wide Web.