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The Economics of Pollution Havens

9781845425357 Edward Elgar Publishing
Edited by Don Fullerton, Gutgsell Professor of Finance and Institute of Government and Public Affairs, University of Illinois and Research Associate, National Bureau of Economic Research, US
Publication Date: 2006 ISBN: 978 1 84542 535 7 Extent: 424 pp
A pollution haven may arise if environmental stringency differs between countries, when capital is mobile, and when trade rules allow firms to relocate and still sell their products to the same customers. This cohesive volume analyzes how country characteristics determine environmental rules, how those rules affect production costs, trade, and investment flows, how those flows affect pollution, prices, and incomes, and finally how all of these last considerations feed back into environmental rules.

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A pollution haven may arise if environmental stringency differs between countries, when capital is mobile, and when trade rules allow firms to relocate and still sell their products to the same customers. This cohesive volume analyzes how country characteristics determine environmental rules, how those rules affect production costs, trade, and investment flows, how those flows affect pollution, prices, and incomes, and finally how all of these last considerations feed back into environmental rules.

The sixteen papers collected here represent the most recent and significant advancements of knowledge on the subject. The contributors, all well-known scholars in the area, investigate how polluter location decisions respond to pollution policies, how local environmental rules respond to those location decisions, and how trade liberalization affects the incentives of governments to regulate dirty industries. The volume begins with a comprehensive overview by M. Scott Taylor and goes on to explore how the usual effects of pollution havens can be reversed. Also covered are the ways in which managed trade and trade liberalization, the regulation of multinationals, political stability and emissions controls impact pollution havens.

Written for a multidisciplinary audience, The Economics of Pollution Havens will be of interest to those working in the areas of economics, international trade, political science, public policy, and environmental studies.
Contributors
Contributors: E.B. Barbier, R.A. Becker, C. Di Maria, J. Ederington, C. Elbers, R.J.G.M. Florax, P.G. Fredriksson, A. Gallegos, R. Golombek, M. Hoel, P.T. Hultberg, B.S. Javorcik, M.E. Kahn, A. Levinson, J.A. List, M. Mani, C. McAusland, W. McHone, D.L. Millimet, J. Minier, A. Mulatu, P.M. Regibeau, H. Sigman, S.A. Smulders, M.S. Taylor, S.-J. Wei, C. Withagen, X. Wu, Y. Yoshino
Contents
Contents:
Preface
1. Unbundling the Pollution Haven Hypothesis
M. Scott Taylor
2. Environmental Policy, Population Dynamics and Agglomeration
Chris Elbers and Cees Withagen
3. Managed Trade, Trade Liberalisation and Local Pollution
Pierre M. Regibeau and Alberto Gallegos
4. Pollution Havens and the Regulation of Multinationals with Asymmetric Information
Xiaodong Wu
5. Trade Integration and Political Turbulence: Environmental Policy Consequences
Per G. Fredriksson and Muthukumara Mani
6. Pollution Abatement Expenditure by US Manufacturing Plants: Do Community Characteristics Matter?
Randy A. Becker
7. Environmental Regulation as Export Promotion: Product Standards for Dirty Intermediate Goods
Carol McAusland
8. Unilateral Emission Reductions and Cross-Country Technology Spillovers
Rolf Golombek and Michael Hoel
9. Trade Liberalization and Pollution Havens
Josh Ederington, Arik Levinson and Jenny Minier
10. Testing for Pollution Havens Inside and Outside of Regional Trading Blocs
Matthew E. Kahn and Yutaka Yoshino
11. Environmental Regulation and International Trade: Empirical Results for Germany, the Netherlands and the US, 1977–1992
Abay Mulatu, Raymond J.G.M. Florax and Cees Withagen
12. Pollution Havens and Foreign Direct Investment: Dirty Secret or Popular Myth?
Beata Smarzynska Javorcik and Shang-Jin Wei
13. The Unintended Disincentive in the Clean Air Act
John A. List, Daniel L. Millimet and Warren McHone
14. Trade Pessimists vs Technology Optimists: Induced Technical Change and Pollution Havens
Corrado Di Maria and Sjak A. Smulders
15. Does Trade Promote Environmental Coordination? Pollution in International Rivers
Hilary Sigman
16. Cross-Country Policy Harmonization with Rent-Seeking
Patrik T. Hultberg and Edward B. Barbier
Index
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