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
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