Globalization and Dirty Industries: Do Pollution Havens Matter?

Grether, Jean‐Marie; Mélo, Jaime de

doi:10.3386/w9776

Cited by 80 publications

(76 citation statements)

References 19 publications

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“…For example, the coefficient on distance is negative and slightly higher than the "average" estimate of -1.0 from meta studies, which is what one might expect since weight-reducing dirty industries are more sensitive to transport costs than clean industries (see e.g. the estimates in Grether and de Melo (2004)). Likewise, common language and common religion enhances trade.…”

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Unravelling the worldwide pollution haven effect

Grether

Mathys

Mélo

2012

The Journal of International Trade & Economic Development

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SummaryThis paper tackles the "pollution haven" argument by estimating the pollution content of imports (PCI). The PCI is then decomposed into three components: (i) a "deep" component (i.e. traditional variables unrelated to the environmental debate); (ii) a factor endowment component and (iii) a "pollution haven" component reflecting the impact of differences in environmental policies. The estimation is carried out for 1987 for an extensive data set covering 10 pollutants, 48 countries and 79 ISIC 4-digit sectors. Decompositions based on cross-section econometric estimates suggest a significant pollution haven effect which increases the PCI of the North because of stricter environmental regulations in the North. At the same time, the factor endowment effect lowers the PCI of the North, as the North is relatively well-endowed in capital and pollution-intensive activities are capital intensive. On a global scale, because the bulk of trade is intra-regional with a high North-North share, these effects are small relative to the "deep" determinants of the worldwide PCI. In sum, differences in factor endowments and environmental policies have only marginally affected the PCI of world trade at the end of the eighties. Keywords: Trade and The Environment, Pollution Haven Effect, Factor Endowment Effect JEL Classification: F18, Q56We thank Werner Antweiler, Andrea Baranzini, Marius Brülhart, Olivier Cadot, Matthew Cole, Céline Carrère, Robert Elliott, Gene Grossman, Jaya Krishnakumar, Bernard Sinclair-Desgagné, Scott Taylor, David Wheeler, two referees and participants at the ETSG meeting in Dublin (2005) and a seminar at the PSE in 2007 for comments on an earlier draft. This is an extensively revised version of Grether et al. (2006) AbstractThis paper tackles the "pollution haven" argument by estimating the pollution content of imports (PCI). The PCI is then decomposed into three components: (i) a "deep" component JEL Classification numbers: F18, Q56Key Words: Trade and the environment, pollution haven effect, factor endowment effect 1 We thank

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confidence: 80%

“…However, we maintain distance as a regressor to control for the fact that dirty industries are predominantly weight-reducing activities (see supporting evidence in e.g. Grether and de Melo (2004)) and 13 For reference, Antweiler, Copeland and Taylor (2001) …”

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confidence: 99%

Unravelling the worldwide pollution haven effect

Grether

Mathys

Mélo

2012

The Journal of International Trade & Economic Development

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“…Elle s'inscrit dans le prolongement de la théorie traditionnelle du commerce international : un durcissement des normes dans les pays industrialisés pourrait conduire les pays moins développés à se spécialiser dans la production de biens des secteurs les plus polluants et à accueillir les firmes concernées du nord. Cette hypothèse est cependant contradictoire avec celle des dotations de facteurs (Copeland et Taylor, 2003), dans la mesure où les industries très polluantes sont en règle générale fortement capitalistiques (Grether et de Melo, 2003). La nature des spécialisations dépend alors des effets respectifs de l'une et l'autre hypothèse.…”

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La Restriction des émissions de CO2 pénalise-t-elle les exportations? Un modèle de gravité avec données de panel et variables muettes régionales

Trotignon

2011

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Tous droits réservés © HEC Montréal, 2010 Ce document est protégé par la loi sur le droit d'auteur. L'utilisation des services d'Érudit (y compris la reproduction) est assujettie à sa politique d'utilisation que vous pouvez consulter en ligne.https://apropos.erudit.org/fr/usagers/politique-dutilisation/ Cet article est diffusé et préservé par Érudit.Érudit est un consortium interuniversitaire sans but lucratif composé de l'Université de Montréal, l'Université Laval et l'Université du Québec à Montréal. Il a pour mission la promotion et la valorisation de la recherche. (1986)(1987)(1988)(1989)(1990)(1991)(1992)(1993)(1994)(1995)(1996)(1997)(1998)(1999)(2000)(2001)(2002)(2003). Cet effet est renforcé dans un contexte d'intégration régionale. Cela vient conforter l'hypothèse de Porter, selon laquelle la politique environnementale stimule l'innovation et in fine la productivité moyenne d'une économie. Les accords internationaux sur le climat apparaissent ainsi comme une occasion de réorienter favorablement les économies nationales vers les technologies et les produits économes en énergie fossile. LA RESTRICTION DES ÉMISSIONS DE CO 2 PÉNALISE-T-ELLE LES EXPORTATIONS? UN MODÈLE DE GRAVITÉ AVEC DONNÉES DE PANEL ET VARIABLES MUETTES RÉGIONALES Jérôme TROTIGNON GATE Lyon St-Etienne CNRS UMR 5824Université de Lyon trotignon@gate.cnrs.fr RÉSUMÉ -À partir d'un modèle de gravité en données de panel, nous estimons les effets sur les exportations du contrôle des émissions de CO 2 d'un pays relativement à ses partenaires. Pour la première fois dans une étude sur la restriction environnementale, le modèle introduit des variables muettes correspondant aux flux commerciaux internes et externes aux groupes régionaux. Loin de pénaliser les exportations, la diminution des émissions de CO 2 s'avère bénéfique aux performances extérieures des entreprises (1986)(1987)(1988)(1989)(1990)(1991)(1992)(1993)(1994)(1995)(1996)(1997)(1998)(1999)(2000)(2001)(2002)(2003). Cet effet est renforcé dans un contexte d'intégration régionale. Cela vient conforter l'hypothèse de Porter, selon laquelle la politique environnementale stimule l'innovation et in fine la productivité moyenne d'une économie. Les accords internationaux sur le climat apparaissent ainsi comme une occasion de réorienter favorablement les économies nationales vers les technologies et les produits économes en énergie fossile. ABSTRACT -Does CO 2 Emissions Stringency Penalize Exports? A Gravity Model UsingPanel Data and Regional Dummies. Basing our study on a gravity model using panel data, we estimate the effects on exports of the progress achieved by a country as regards CO 2 emissions in relation to its partners. For the first time in such an issue, the model includes dummy variables corresponding to the internal and external trade flows of regional groups. The decrease in CO 2 emissions does not penalize exports (1986)(1987)(1988)(1989)(1990)(1991)(1992)(1993)(1994)(1995)(1996)(1997)(1998)(1999)(2000)(2001)(2002)(2003), but on the contrary is found to be favourable to firms' e...

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“…Smelting non-ferrous metals (and the processing of paper from wood) usually takes place close to extraction sites to avoid transport costs (Ederington et al 2005). Grether and de Melo (2004) estimate a bilateral-trade gravity model for each one of the 'dirty' industries and an aggregate of 'clean' industries. 13 They find a 13 SO2 and CO2 emission patterns across industries are very similar as the same six industries are the main emitters for both gases: petroleum products, pulp and paper, non-ferrous metals, iron and steel, consistently higher coefficient for the distance coefficient for dirty industries.…”

Section: Pollution Havens?mentioning

confidence: 99%

Trade in a 'Green Growth' Development Strategy: Global Scale Issues and Challenges

Mélo¹

2012

Policy Research Working Papers

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The paper surveys the state of knowledge about the trade-related environmental consequences of a country's development strategy along three channels: (i) direct trade-environment linkages (overexploitation of natural resources and trade-related transport costs);(ii) 'virtual trade' in emissions resulting from production activities; (iii) the product mix attributes of a 'green-growth' strategy (environmentally preferable products and goods for environmental management). Main conclusions are the following. Trade exacerbates over-exploitation of natural resources in weak institutional environments, but there is little evidence that differences in environmental policies across countries has led to significant 'pollution havens'. Trade policies to 'level the playing field' would be ineffective and result in destructive conflicts in the WTO. Lack of progress at the Doha round suggests the need to modify the current system of global policy making.

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Globalization and Dirty Industries: Do Pollution Havens Matter?

Cited by 80 publications

References 19 publications

Unravelling the worldwide pollution haven effect

Unravelling the worldwide pollution haven effect

La Restriction des émissions de CO2 pénalise-t-elle les exportations? Un modèle de gravité avec données de panel et variables muettes régionales

Trade in a 'Green Growth' Development Strategy: Global Scale Issues and Challenges

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