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The impact of environmental policy on location patterns in the waste management industry

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  • Aleksandra Falkowska

    (Hitotsubashi University)

Abstract

This research investigates the influence environmental policy stringency has, together with other factors, such as land and capital endowments, on the location patterns of the European waste management industry. The pollution haven hypothesis (PHH) and the Porter hypothesis (PH) are tested simultaneously through the employment of a model that includes interactions between country characteristics and waste treatment option intensities. Analysis of 27 countries and 3 treatment options reveals that stringent regulations increase a country’s share in the recovery sector, supporting the PH. Despite the opposite effect being observed in the final disposal sector, the evidence is not strong enough to confirm the PHH in its original form. The general negative relationship between the pollution intensity and the regulatory stringency, however, indicates the presence of a pollution haven effect.

Suggested Citation

  • Aleksandra Falkowska, 2020. "The impact of environmental policy on location patterns in the waste management industry," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 37(1), pages 167-195, April.
    • Handle: RePEc:spr:epolit:v:37:y:2020:i:1:d:10.1007_s40888-020-00174-9
    DOI: 10.1007/s40888-020-00174-9
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    More about this item

    Keywords

    Porter hypothesis; Pollution haven hypothesis; Industry location; Waste management; Comparative advantage; Environmental policy;
    All these keywords.

    JEL classification:

    • 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

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