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 ?
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.
As David Wheeler points out, even those who do not find support for the pollution haven hypothesis should exercise caution, because "there is no theoretical reason why industries with exceptionally high pollution control costs should ignore regulatory concerns.
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 also said that even though developing countries have weaker environmental regulatory systems, there was no evidence that companies located an operation in a developing country because it was a pollution haven, and that companies tend to bring their pollution-control and energy-efficiency standards with them because, among other reasons, it's more economically efficient to maintain standard production processes and management systems.
The report adds that lax regulation threatens to make the province a pollution haven.
Addressing the pollution haven concern has proven the most difficult issue.
These countries worry that a change in policies could lead to the relocation of industries in countries with lower standards, so called pollution havens.
Scott Taylor first introduced a complete model of pollution havens, The B.
The mere existence of pollution havens has been thoroughly debated.
Rather than setting themselves up as pollution havens, many developing countries are recognizing that they have an opportunity to learn from the mistakes of the industrial world and leapfrog directly to the technologies of tomorrow.
Some feared that poorer countries deliberately would keep environmental standards lax in order to attract investment by becoming pollution havens.

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