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EU air pollution regulation: A breath of fresh air for Eastern European polluting industries?

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  • Igor Bagayev

    (ERUDITE - Equipe de Recherche sur l’Utilisation des Données Individuelles en lien avec la Théorie Economique - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12 - Université Gustave Eiffel)

  • Julie Lochard

    (ERUDITE - Equipe de Recherche sur l’Utilisation des Données Individuelles en lien avec la Théorie Economique - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12 - Université Gustave Eiffel)

Abstract

Does air quality regulation in the European Union (EU) foster polluting activity in emerging and developing countries? In this paper, we propose an original variable that evaluates regulation stringency, based on the EU Air Quality Framework Directive. Focusing on the underlying mechanism and controlling for endogeneity in the relation between regulation and trade, we provide robust evidence that EU countries implementing more stringent air pollution regulations import relatively more in pollution-intensive sectors from developing and emerging countries in Europe and Central Asia.
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Suggested Citation

  • Igor Bagayev & Julie Lochard, 2017. "EU air pollution regulation: A breath of fresh air for Eastern European polluting industries?," Post-Print hal-04144925, HAL.
    • Handle: RePEc:hal:journl:hal-04144925
    DOI: 10.1016/j.jeem.2016.12.003
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    References listed on IDEAS

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    2. Li, Ke & Yuan, Weihong & Li, Jianglong & Ai, Hongshan, 2021. "Effects of time-dependent environmental regulations on air pollution: Evidence from the Changsha-Zhuzhou-Xiangtan region, China," World Development, Elsevier, vol. 138(C).
    3. Lei Ding & Xuejuan Fang, 2022. "Spatial–temporal distribution of air-pollution-intensive industries and its social-economic driving mechanism in Zhejiang Province, China: a framework of spatial econometric analysis," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(2), pages 1681-1712, February.
    4. Óscar Rodil-Marzábal & Hugo Campos-Romero, 2021. "The Intra-EU Value Chain: An Approach to Its Economic Dimension and Environmental Impact," Economies, MDPI, vol. 9(2), pages 1-17, April.
    5. Xueping Wu & Ming Gao, 2021. "Effects of different environmental regulations and their heterogeneity on air pollution control in China," Journal of Regulatory Economics, Springer, vol. 60(2), pages 140-166, December.
    6. Du, Kerui & Cheng, Yuanyuan & Yao, Xin, 2021. "Environmental regulation, green technology innovation, and industrial structure upgrading: The road to the green transformation of Chinese cities," Energy Economics, Elsevier, vol. 98(C).
    7. Huang, Geng & He, Ling-Yun & Lin, Xi, 2023. "Deterioration or improvement? Intermediate product import and enterprises' environmental performance," Structural Change and Economic Dynamics, Elsevier, vol. 65(C), pages 139-150.
    8. Fang Xu & Meng Tian & Jie Yang & Guohu Xu, 2020. "Does Environmental Inspection Led by the Central Government Improve the Air Quality in China? The Moderating Role of Public Engagement," Sustainability, MDPI, vol. 12(8), pages 1-27, April.
    9. Jarosław Szlugaj & Krzysztof Galos, 2021. "Limestone Sorbents Market for Flue Gas Desulphurisation in Coal-Fired Power Plants in the Context of the Transformation of the Power Industry—A Case of Poland," Energies, MDPI, vol. 14(14), pages 1-16, July.
    10. Thais Nunez-Rocha & Camelia Turcu, 2019. "Trade in Fuels and Environmental Regulation: A Two-Sided Story," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 61(2), pages 302-343, June.
    11. Xueping Wu & Ming Gao & Shihong Guo & Wei Li, 2019. "Effects of environmental regulation on air pollution control in China: a spatial Durbin econometric analysis," Journal of Regulatory Economics, Springer, vol. 55(3), pages 307-333, June.
    12. Shi, Beibei & Jiang, Lisha & Bao, Rui & Zhang, Ziqing & Kang, YuanQi, 2023. "The impact of insurance on pollution emissions: Evidence from China's environmental pollution liability insurance," Economic Modelling, Elsevier, vol. 121(C).
    13. repec:aly:journl:202194 is not listed on IDEAS
    14. Li, Jianglong & Gao, Jinfeng & Liao, Meiling, 2024. "Operating risk of enterprises when adopting environmental regulation: Evidence from environmental protection law in China," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 901-914.
    15. Wu, Mingqin & Cao, Xun, 2021. "Greening the career incentive structure for local officials in China: Does less pollution increase the chances of promotion for Chinese local leaders?," Journal of Environmental Economics and Management, Elsevier, vol. 107(C).
    16. Konstantin Sommer & Henri L.F. de Groot & Franc Klaassen, 2022. "The effects of market integration on pollution: an analysis of EU enlargements," Tinbergen Institute Discussion Papers 22-039/VI, Tinbergen Institute, revised 21 Mar 2023.
    17. Cheng, Yuanyuan & Du, Kerui & Yao, Xin, 2024. "Restructuring and relocation of polluting industries under air pollution control: Evidence from industrial investment flows between Chinese cities," China Economic Review, Elsevier, vol. 83(C).
    18. Beatriz Jiménez‐Parra & Daniel Alonso‐Martínez & José‐Luis Godos‐Díez, 2018. "The influence of corporate social responsibility on air pollution: Analysis of environmental regulation and eco‐innovation effects," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(6), pages 1363-1375, November.
    19. Quy Van Khuc & Minh-Hoang Nguyen & Tam-Tri Le & Truc-Le Nguyen & Thuy Nguyen & Hoang Khac Lich & Quan-Hoang Vuong, 2022. "Brain Drain out of the Blue: Pollution-Induced Migration in Vietnam," IJERPH, MDPI, vol. 19(6), pages 1-20, March.
    20. Mei Ren & Caihong Huang & Xiaomin Wang & Wei Hu & Wenxin Zhang, 2019. "Research on the Distribution of Pollution-Intensive Industries and Their Spatial Effects in China," Sustainability, MDPI, vol. 11(19), pages 1-20, September.

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    More about this item

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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