Pollution Haven

Pollution Haven

A jurisdiction with few environmental restrictions relative to other jurisdictions. It has been suggested that companies in "dirty" industries such as mining or milling have an incentive to relocate to pollution havens, but there is evidence of this actually happening.
References in periodicals archive ?
These concerns have strengthened the well-known pollution haven hypothesis, where environmental standards and regulations play a key role in the reallocation of polluting industries with poor environmental regulation.
2009), "An Empirical Investigation of the Pollution Haven Effect with Strategic Environment and Trade Policy," Journal of International Economics 78(2): 242-255.
Trade, the pollution haven hypothesis and the environmental Kuznets curve: examining the linkages.
La evaluacion del efecto potencial del rigor de la legislacion ambiental sobre la localizacion del IED corresponde al test de la hipotesis de pollution haven.
However, several recent studies that use panel data to control for unobserved heterogeneity, or instruments to control for endogeneity, do find statistically significant pollution haven effects of reasonable magnitude.
2], and found mixed evidences for the pollution haven hypothesis depending on the pollutants examined.
Baumol and Oates (1998) systematically prove hypothesis of pollution haven in theory, taking the view that the developing countries would gather the serious pollution industries if they adopt the loose regulation policy.
The pollution haven effect (PHE) predicts that more stringent environmental regulation in a country would decrease domestic production and increase imports in the regulated markets.
In a recent crosscountry study, Kellenberg (2009) found robust confirmation of a pollution haven effect.
52) Brian Copeland and Scott Taylor, in a very thorough theoretical and empirical analysis of trade and the environment, conclude that "the evidence does not support the notion that trade patterns are driven by pollution haven motives.
Roberts and Toffolon-Weiss review four cases in Louisiana, a state considered a pollution haven in the United States.
The report adds that lax regulation threatens to make the province a pollution haven.

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