North-South Displacement Effects of Environmental Regulation: The Case of Battery Recycling

Tanaka, Shinsuke; Teshima, Kensuke; Verhoogen, Eric

doi:10.1257/aeri.20210201

Cited by 22 publications

(13 citation statements)

References 58 publications

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“…Dong et al (2022) find that strict environmental regulations induce firms to relocate factories to other countries through OFDI . Third, different from several other studies that OFDI leads to more AP (Zhao & Zhu, 2022) or OFDI reduces AP (Mohanty & Sethi, 2022; Tanaka et al, 2022; Zhou & Li, 2021), this paper finds that OFDI has both positive and negative influences on AP in different periods. On the one hand, the OFDI of polluting firms reduces the AP of the home country by optimizing the economic structure or by obtaining green technology.…”

Section: Empirical Results and Discussioncontrasting

confidence: 99%

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The Nexus Between Air Pollution and Outward Foreign Direct Investment

Zhao

2023

Sage Open

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This study examines the causal relationship between air pollution ( AP) and outward foreign direct investment ( OFDI) in China by applying the bootstrap rolling-window full- and subsample Granger causality test in a sample from 2013 to 2022. We find that AP negatively influenced OFDI in 2016, while this influence became positive at the end of 2019. The results confirm the coexistence of the pollution haven hypothesis, factor endowment hypothesis, and Porter hypothesis. In turn, OFDI negatively influenced AP in 2019, which proves the “composition effect” and “technique effect,” implying that OFDI brings better air quality by optimizing the economic structure and promoting green technology. However, this influence became positive in 2020, which is consistent with the “scale effect,” indicating that OFDI worsens air quality by expanding production. This research provides insights for the government to coordinate OFDI growth and carbon neutralization to achieve sustainable development. It also has implications for firms to reduce environmental costs through OFDI.

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Section: Empirical Results and Discussioncontrasting

confidence: 99%

“…Mohanty and Sethi (2022) also prove that OFDI helps to reduce pollution in BRICS countries (Brazil, Russia, India, China, and South Africa). Tanaka et al (2022) further find that relocating battery recycling from the US to Mexico improves air quality in the US.…”

Section: Literature Reviewmentioning

confidence: 84%

The Nexus Between Air Pollution and Outward Foreign Direct Investment

Zhao

2023

Sage Open

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“…Examining the impact of trade on local pollution levels, Bombardini and Li (2020) reveal that it can lead to an increase in infant mortality. Additionally, Tanaka et al (2022) demonstrate a case of offshoring due to stricter U.S. air quality standards, wherein battery recycling relocated from the U.S. to Mexico, resulting in a connection to decreased birth weight.…”

Section: Environmentmentioning

confidence: 96%

“…Additionally, Tanaka et al. (2022) demonstrate a case of offshoring due to stricter U.S. air quality standards, wherein battery recycling relocated from the U.S. to Mexico, resulting in a connection to decreased birth weight.…”

Section: Trade and Beyondmentioning

confidence: 99%

International trade: Smarten up to talk the talk

Haas,

Schenk‐Hoppé

2023

The Manchester School

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International trade is currently under fire from many sides. Protectionist trade policies are on the rise, putting an end to the decade‐long March of free trade. Making sense of the daily headlines and having an informed opinion on your own has rarely been more important than it is now. Our work aims to explain the driving forces behind international trade, its history, how it shaped the world, its economic models, issues ranging from job losses to the environment and why buying local often makes no sense. We summarize the most important academic literature on these topics in a non‐technical, educational manner. If the reader feels enabled to form their own views on the pros and cons of international trade and that they can ‘talk the talk’, our effort has been fruitful.

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“…There is also a limited but growing literature looking at the effects of trade liberalization on non-economic outcomes such as crime (Dix-Carneiro et al, 2018;Dell et al, 2019), education (Atkin, 2016), mental distress (Crino et al, 2019), and the environment (Tanaka et al, 2022). We contribute by providing robust evidence of an additional possible side effect of trade liberalization in developing countries, namely an increase in political violence.…”

Section: Introductionmentioning

confidence: 98%

Trade liberalization, economic activity and political violence in the Global South: evidence from PTAs

Amodio,

Baccini,

Chiovelli

et al. 2024

Economic Policy

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This paper investigates the impact of agricultural trade liberalization on economic activity and political violence in emerging countries. We use data on all Preferential Trade Agreements (PTAs) signed between 25 low- and middle-income countries and their high-income trade partners between 1995 and 2013. We exploit the implied reduction in agricultural tariffs over time combined with variation within countries in their suitability to produce liberalized crops to find that economic activity increases differentially in affected areas. We also find strong positive effects on political violence, and present evidence consistent with both producer- and consumer-side mechanisms: violence increases differentially in more urbanized areas that are suitable to produce less labor-intensive crops as well as crops that are consumed locally. Our estimates imply that economic activity and political violence would have been around 2% and 7% lower, respectively, across countries in our sample had the PTAs not been signed.

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North-South Displacement Effects of Environmental Regulation: The Case of Battery Recycling

Cited by 22 publications

References 58 publications

The Nexus Between Air Pollution and Outward Foreign Direct Investment

The Nexus Between Air Pollution and Outward Foreign Direct Investment

International trade: Smarten up to talk the talk

Trade liberalization, economic activity and political violence in the Global South: evidence from PTAs

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