Pollution Haven Hypothesis

Pollution Haven Hypothesis

The idea that pollution-producing industries are attracted to areas with few environmental regulations. The hypothesis suggests that companies in "dirty" industries such as mining or milling have an incentive to relocate to areas where they will be comparatively free to do as do as they please and/or do not have to pay clean-up costs. However, there has been little evidence of this actually happening.
References in periodicals archive ?
Trade, the Pollution Haven Hypothesis and the Environmental Kuznets Curve: Examining the Linkage.
Two recent articles have found modest empirical support for the pollution haven hypothesis.
63) On the other hand, Cole finds that United States imports, from Mexico and from the world, are growing faster, as a share of United States consumption, in industries that have higher pollution abatement costs, just as the pollution haven hypothesis would suggest.
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