Empirical Tests of the Pollution Haven Hypothesis When Environmental Regulation is Endogenous

Millimet, Daniel L.; Roy, Jayjit

doi:10.1002/jae.2451

Cited by 338 publications

(169 citation statements)

References 87 publications

Supporting

Mentioning

161

Contrasting

Unclassified

Order By: Relevance

“…Early studies estimating the effect of exogenous environmental regulations found little or no evidence supporting the PHH (16,17). More recent models accounting for the endogeneity of environmental policies did find a significant and robust effect (18,19). Tests of the PHH for commercial agriculture in developed economies found that polluting activities, such as large-scale livestock operations, tend to locate in weaker jurisdictions (20)(21)(22).…”

mentioning

confidence: 99%

Land-use policies and corporate investments in agriculture in the Gran Chaco and Chiquitano

Waroux

Garrett

Heilmayr

et al. 2016

Proc. Natl. Acad. Sci. U.S.A.

116

View full text Add to dashboard Cite

Growing demand for agricultural commodities is causing the expansion of agricultural frontiers onto native vegetation worldwide. Agribusiness companies linking these frontiers to distant spaces of consumption through global commodity chains increasingly make zero-deforestation pledges. However, production and land conversion are often carried out by less-visible local and regional actors that are mobile and responsive to new agricultural expansion opportunities and legal constraints on land use. With more stringent deforestation regulations in some countries, we ask whether their movements are determined partly by differences in land-use policies, resulting in "deforestation havens." We analyze the determinants of investment decisions by agricultural companies in the Gran Chaco and Chiquitano, a region that has become the new deforestation "hot spot" in South America. We test whether companies seek out less-regulated forest areas for new agricultural investments. Based on interviews with 82 companies totaling 2.5 Mha of properties, we show that, in addition to proximity to current investments and the availability of cheap forestland, lower deforestation regulations attract investments by companies that tend to clear more forest, mostly cattle ranching operations, and that lower enforcement attracts all companies. Avoiding deforestation leakage requires harmonizing deforestation regulations across regions and commodities and promoting sustainable intensification in cattle ranching.pollution haven | leakage | land-use change | soy | cattle

show abstract

mentioning

confidence: 99%

Land-use policies and corporate investments in agriculture in the Gran Chaco and Chiquitano

Waroux

Garrett

Heilmayr

et al. 2016

Proc. Natl. Acad. Sci. U.S.A.

116

View full text Add to dashboard Cite

show abstract

“…We also thank Francis Vella for this suggestion. Such parametric specification for heteroskedasticity has a long-standing history in econometrics since Harvey (1976) and also been used in similar contexts as ours (see, e.g., Farre, Klein, andVella, 2013 andRoy, 2011). Both Monte Carlo simulations and empirical Monte Carlo simulations in Millimet and Tchernis (2013) show that this parametric approach works particularly well in the presence of heteroskedastic errors in the binary response equation (we will further discuss the test of this assumption below.).…”

Section: Implementation Of Kv-ivmentioning

confidence: 66%

Informal search, bad search?: the effects of job search method on wages among rural migrants in urban China

2017

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Any opinions expressed in this paper are those of the author(s) and not those of IZA. Research published in this series may include views on policy, but IZA takes no institutional policy positions. The IZA research network is committed to the IZA Guiding Principles of Research Integrity. The IZA Institute of Labor Economics is an independent economic research institute that conducts research in labor economics and offers evidence-based policy advice on labor market issues. Supported by the Deutsche Post Foundation, IZA runs the world's largest network of economists, whose research aims to provide answers to the global labor market challenges of our time. Our key objective is to build bridges between academic research, policymakers and society. IZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. what are the underlying mechanisms. We empirically examine these issues specifically for rural migrants in urban China, a country where one of the largest domestic migration in human history has occurred over the past decades. We find that there exists a significant wage penalty for those migrant workers who have conducted their search through informal channels, despite their popularity. Our further analysis suggests two potential reasons for the wage penalty: 1) the informal job search sends a negative signal (of workers' inability to successfully find a job in a competitive market) to potential employers, resulting in lower wages; and 2) there exists a trade-off between wages and search efficiency for quicker entry into local labor market. We also find some evidence that the informal job search may lead to low-skilled jobs with lower wages. We do not find strong evidence supporting alternative explanations. Terms of use: Documents in JEL

show abstract

“…This transfer is economically motivated because developing countries often execute less stringent environmental regulations, and conversely, developed countries have stricter environmental regulations. It is therefore more expensive for companies to meet environmental standards in developed countries (Levinson andTaylor 2008, Millimet andRoy 2016). The environmental Kuznets curve hypothesizes a relationship between economic growth and environmental degradation that could contribute to the imbalanced emission flows.…”

Section: Figmentioning

confidence: 99%

Trade in the telecoupling framework: evidence from the metals industry

Xiong¹,

Millington²,

Xu³

2018

E&S

View full text Add to dashboard Cite

ABSTRACT. As a conceptual framework for understanding contemporary sustainability challenges, telecoupling emphasizes the importance of socioeconomic and environmental interactions over long distances. These long-distance interactions can occur through multiple human activities. We focus on international trade, a major channel of telecoupling flows, and in particular on the international trade of metals. We use the data of physical products and embedded greenhouse gas (GHG) emissions trade in the World Input-Output Database (WIOD) to quantitatively examine how countries contribute to both economic and environmental flows through the trade of metals, but also how that contribution varies depending on their position in the global value chain (GVC) of contemporary international trade. This analysis is built on previously developed techniques for decomposing gross exports of products, which we apply to examine embedded GHG emissions. We make comparisons between countries' contributions to flows of economic value versus embedded GHG emissions, but also examine contributions beyond total volumes of trade and bilateral trade. Specifically, we quantify the economic and environmental spillover effects that occur in contemporary international trade because of the GVC in which flows of intermediate goods form components in other subsequently traded goods. We interpret differences between countries' contributions to the flows of economic value versus embedded GHG emissions as being related to the intensity and efficiency of resource use during production. In turn, differences in contributions to direct trade flows versus spillover flows are related to their positions in the GVC. Subsequently, we discuss other elements of the telecoupling framework in trade, i.e., agents, causes, and effects. Quantitatively incorporating these telecoupling framework elements alongside spillover flows will enable investigation of dynamics and relationships that traditional trade theories, data, and models do not currently account for well. Key Words: global value chain; international trade; metal industry; telecoupling framework; world input-output database INTRODUCTIONThe conceptual framework of telecoupling (Liu et al. 2013(Liu et al. , 2015 highlights the importance of socioeconomic and environmental interactions over large distances for understanding contemporary sustainability challenges. The framework integrates five elements: coupled human and natural systems (CHANS), flows, agents, causes, and effects. Local interactions within CHANS are mediated by agents making decisions, with socioeconomic and environmental causes and effects. Furthermore, in the telecoupling framework, CHANS are the origin and destination of long-distance interactions, connected by material and information flows, and can be distinguished from those that are sending systems, those that are receiving systems, and those that are recipients of spillover flows from the interaction of other systems. As highlighted previously (e.g., Liu et al. 2013), longdistance telecou...

show abstract

Empirical Tests of the Pollution Haven Hypothesis When Environmental Regulation is Endogenous

Cited by 338 publications

References 87 publications

Land-use policies and corporate investments in agriculture in the Gran Chaco and Chiquitano

Land-use policies and corporate investments in agriculture in the Gran Chaco and Chiquitano

Informal search, bad search?: the effects of job search method on wages among rural migrants in urban China

Trade in the telecoupling framework: evidence from the metals industry

Contact Info

Product

Resources

About