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.
