IDEAS home Printed from https://ideas.repec.org/a/aea/aejpol/v14y2022i2p125-60.html
   My bibliography  Save this article

Do Environmental Regulations Affect the Decision to Export?

Author

Listed:
  • Jevan Cherniwchan
  • Nouri Najjar

Abstract

This paper investigates how a common form of environmental regulation—air quality standards—affects exporters. We develop a simple theoretical model to show how the design of these standards causes (i) some firms to stop exporting and (ii) a reduction in the export volumes of affected continuing exporters. We exploit quasi-experimental variation resulting from the design of Canadian air quality standards to test these predictions empirically. Our estimates confirm our model's predictions: we find that for the most affected manufacturers, regulation reduced export volumes by 32 percent and increased the likelihood plants stop exporting by 5 percentage points.

Suggested Citation

  • Jevan Cherniwchan & Nouri Najjar, 2022. "Do Environmental Regulations Affect the Decision to Export?," American Economic Journal: Economic Policy, American Economic Association, vol. 14(2), pages 125-160, May.
    • Handle: RePEc:aea:aejpol:v:14:y:2022:i:2:p:125-60
    DOI: 10.1257/pol.20200290
    as

    Download full text from publisher

    File URL: https://www.aeaweb.org/doi/10.1257/pol.20200290
    Download Restriction: no
    File URL: https://doi.org/10.3886/E137841V1
    Download Restriction: no
    File URL: https://www.aeaweb.org/doi/10.1257/pol.20200290.appx
    Download Restriction: no
    File URL: https://www.aeaweb.org/doi/10.1257/pol.20200290.ds
    Download Restriction: Access to full text is restricted to AEA members and institutional subscribers.
    File URL: https://libkey.io/10.1257/pol.20200290?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
    ---><---

    Citations

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


    Cited by:

    1. Zhang, Ming & Zhao, Yingxue, 2023. "Does environmental regulation spur innovation? Quasi-natural experiment in China," World Development, Elsevier, vol. 168(C).
    2. Guo, Zhangdong & Zhang, Xiaoning, 2024. "Has the healthy city pilot policy improved urban air quality in China? Evidence from a quasi-natural experiment," Energy Economics, Elsevier, vol. 129(C).
    3. Du, Kerui & Liu, Xueyue & Zhao, Cheng, 2023. "Environmental regulation mitigates energy rebound effect," Energy Economics, Elsevier, vol. 125(C).
    4. Brantly Callaway & Tong Li & Joel Rodrigue & Yuya Sasaki & Yong Tan, 2024. "Regulation, Emissions and Productivity: Evidence from China’s Eleventh Five-Year Plan," Staff Working Papers 24-7, Bank of Canada.
    5. Kumbhakar, Subal C. & Badunenko, Oleg & Willox, Michael, 2022. "Do carbon taxes affect economic and environmental efficiency? The case of British Columbia’s manufacturing plants," Energy Economics, Elsevier, vol. 115(C).
    6. Jevan M. Cherniwchan & M. Scott Taylor, 2022. "International Trade and the Environment: Three Remaining Empirical Challenges," NBER Working Papers 30020, National Bureau of Economic Research, Inc.
    7. 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.
    8. Ferguson, Shon & Heijmans, Roweno J.R.K., 2023. "Climate Policy and Trade in Polluting Technologies," Working Paper Series 1470, Research Institute of Industrial Economics.
    9. Jevan Cherniwchan & Nouri Najjar, 2021. "Free Trade and the Formation of Environmental Policy: Evidence from US Legislative Votes," Carleton Economic Papers 21-11, Carleton University, Department of Economics, revised 24 Feb 2022.
    10. Juan Huang & Ziyi Wu, 2022. "Impact of Environmental Regulations on Export Trade—Empirical Analysis Based on Zhejiang Province," IJERPH, MDPI, vol. 19(19), pages 1-14, October.
    11. He, Zhenyu & Tang, Yuwei, 2023. "Local environmental constraints and firms’ export product quality: Evidence from China," Economic Modelling, Elsevier, vol. 124(C).
    12. Hamaguchi, Yoshihiro, 2023. "Environmental tax evasion as a determinant of the Porter and pollution haven hypotheses in a corrupt political system," Economic Analysis and Policy, Elsevier, vol. 79(C), pages 610-633.
    13. Ma, Dan & Zhu, Yanjin & Yang, Yuhan, 2024. "How Green finance affects export production quality: Fresh evidence from China," Energy Economics, Elsevier, vol. 131(C).
    14. Yuan, Huaxi & Zou, Longhui & Feng, Yidai, 2023. "How to achieve emission reduction without hindering economic growth? The role of judicial quality," Ecological Economics, Elsevier, vol. 209(C).
    15. Schaufele, Brandon, 2019. "Demand Shocks Change the Excess Burden From Carbon Taxes," MPRA Paper 92132, University Library of Munich, Germany.

    More about this item

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F18 - International Economics - - Trade - - - Trade and Environment
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

    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:aea:aejpol:v:14:y:2022:i:2:p:125-60. 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: Michael P. Albert (email available below). General contact details of provider: https://edirc.repec.org/data/aeaaaea.html .

    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.