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Environmental Standards And Dirty Exports: A Case Study Analysis Of 24 Countries

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  • Wilson, John S.
  • Sewadeh, Mirvat
  • Otsuki, Tsunehiro

Abstract

This paper examines how the stringency of environmental regulations impact international trade patterns. It explores the hypothesis that environmental regulation does not have a significant impact on trade. An econometric analysis is conducted for 24 countries ranging from highly developed to extremely poor to investigate whether environmental regulations have a significant impact on countries exports of pollution intensive goods. This econometric model extends Leamer (1984)'s cross-section Heckscher-Ohlin-Vanek (HOV) model by incorporating measures of stringency of environmental regulation. Correlation between capital intensity and exports are mitigated by grouping the sample countries. The results suggest that Metal, Steels, Pulp and Paper, and Chemicals Industries exhibit a negative relationship.

Suggested Citation

  • Wilson, John S. & Sewadeh, Mirvat & Otsuki, Tsunehiro, 2001. "Environmental Standards And Dirty Exports: A Case Study Analysis Of 24 Countries," 2001 Annual meeting, August 5-8, Chicago, IL 20526, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea01:20526
    DOI: 10.22004/ag.econ.20526
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    References listed on IDEAS

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    4. Levinson, Arik, 1996. "Environmental regulations and manufacturers' location choices: Evidence from the Census of Manufactures," Journal of Public Economics, Elsevier, vol. 62(1-2), pages 5-29, October.
    5. Peter Hooper & J. David Richardson, 1991. "International Economic Transactions: Issues in Measurement and Empirical Research," NBER Books, National Bureau of Economic Research, Inc, number hoop91-1, February.
    6. Peter Hooper & J. David Richardson, 1991. "International Economic Transactions: Issues in Measurement and Empirical Research," NBER Working Papers 3805, National Bureau of Economic Research, Inc.
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