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
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
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