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Environmental markets and the dynamics of pollution haven

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  • John King

Abstract

This paper studies the dynamics of pollution haven in response to shocks to environmental markets. We use transaction-level data from EU offset markets that provide facility-level information on the seller and buyer of offset transactions. We find little association of offset prices or offset-induced movements in pollution with the stringency of environmental regulations. Our results suggest that the analysed offset markets do not substantially increase or decrease the equity of environmental outcomes.

Suggested Citation

  • John King, 2020. "Environmental markets and the dynamics of pollution haven," Journal of Economics and Econometrics, Economics and Econometrics Society, vol. 63(3), pages 45-67.
    • Handle: RePEc:eei:journl:v:63:y:2020:i:3:p:45-67
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    More about this item

    Keywords

    Environmental markets; pollution haven;

    JEL classification:

    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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