IDEAS home Printed from https://ideas.repec.org/a/taf/jitecd/v30y2021i4p625-642.html
   My bibliography  Save this article

Polluting firms' location choices and pollution havens in an R&D-based growth model for an international emissions trading market

Author

Listed:
  • Yoshihiro Hamaguchi

Abstract

We investigate the effect of grandfathered permit allocation and abatement productivity for carbon emissions on growth rate, firms' location choices, foreign direct investment, and total pollution in an agglomeration model with innovation. We consider grandfathered permit allocation as potential rent. We find a distribution effect wherein increasing (decreasing) permit price raises (reduces) firms' rent, thereby stimulating (inhibiting) R $ \& $ &D and the growth rate. Decreasing the permit level (improving abatement productivity) prompts firms to locate from the South (North) to the North (South) in the long run via this effect. Thus, our results imply that improving abatement productivity leads to support of the pollution haven hypothesis.

Suggested Citation

  • Yoshihiro Hamaguchi, 2021. "Polluting firms' location choices and pollution havens in an R&D-based growth model for an international emissions trading market," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 30(4), pages 625-642, May.
  • Handle: RePEc:taf:jitecd:v:30:y:2021:i:4:p:625-642
    DOI: 10.1080/09638199.2021.1889644
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/09638199.2021.1889644
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1080/09638199.2021.1889644?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chui-Yu Chiu & William Tang, 2022. "Measuring the Operational Efficiency and the Water Resources Management Efficiency for Industrial Parks: Empirical Study of Industrial Parks in Taiwan," Sustainability, MDPI, vol. 14(21), pages 1-22, October.
    2. Abdullah F. Alnaim & Nadia Abdelhamid Abdelmegeed Abdelwahed & Bahadur Ali Soomro, 2022. "Environmental Challenges and Green Innovation Strategy: A Vigorous Development of Greener Dynamics," Sustainability, MDPI, vol. 14(15), pages 1-18, August.
    3. Sa Xu & Cunyi Yang & Zhehao Huang & Pierre Failler, 2022. "Interaction between Digital Economy and Environmental Pollution: New Evidence from a Spatial Perspective," IJERPH, MDPI, vol. 19(9), pages 1-23, April.
    4. Xiaoxiang Xu & Mingqiu Liao, 2022. "Prediction of China’s Economic Structural Changes under Carbon Emission Constraints: Based on the Linear Programming Input–Output (LP-IO) Model," Sustainability, MDPI, vol. 14(15), pages 1-13, July.
    5. Mo Du & Shanglei Chai & Shu Li & Zejing Sun, 2022. "How Environmental Regulation Affects Green Investment of Heavily Polluting Enterprises: Evidence from Steel and Chemical Industries in China," Sustainability, MDPI, vol. 14(19), pages 1-14, September.
    6. Yoshihiro Hamaguchi, 2024. "Whether to Abolish or Introduce Dual Regulation as Trade and Environmental Policy?," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 32(1), pages 57-95, January.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:jitecd:v:30:y:2021:i:4:p:625-642. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RJTE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.