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North-South Displacement Effects of Environmental Regulation: The Case of Battery Recycling

Author

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  • Tanaka, Shinsuke

    (Tufts University)

  • Teshima, Kensuke

    (ITAM, Mexico)

  • Verhoogen, Eric

    (Columbia University)

Abstract

This study examines the effect of a tightening of the U.S. air-quality standard for lead in 2009 on the relocation of battery recycling to Mexico and on infant health in Mexico. In the U.S., airborne lead dropped sharply near affected plants, most of which were battery-recycling plants. Exports of used batteries to Mexico rose markedly. In Mexico, production increased at battery-recycling plants, relative to comparable industries, and birth outcomes deteriorated within two miles of those plants, relative to areas slightly farther away. The case provides a salient example of a pollution-haven effect between a developed and a developing country.

Suggested Citation

  • Tanaka, Shinsuke & Teshima, Kensuke & Verhoogen, Eric, 2021. "North-South Displacement Effects of Environmental Regulation: The Case of Battery Recycling," IZA Discussion Papers 14664, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp14664
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    References listed on IDEAS

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    Cited by:

    1. Higney, Anthony & Hanley, Nick & Moro, Mirko, 2022. "The lead-crime hypothesis: A meta-analysis," Regional Science and Urban Economics, Elsevier, vol. 97(C).
    2. Naumann, Fabrice & Bolz, Simon Johannes & Richter, Philipp Moritz, 2022. "Offshoring and Environmental Policy: Firm Selection and Distributional Effects," VfS Annual Conference 2022 (Basel): Big Data in Economics 264086, Verein für Socialpolitik / German Economic Association.
    3. Haas, Levi & Schenk-Hoppé, Klaus R., 2019. "International Trade: Smarten up to talk the talk," MPRA Paper 99096, University Library of Munich, Germany.
    4. Konstantin Sommer, 2024. "The Chinese waste import ban and the emergence of waste havens within Europe," Tinbergen Institute Discussion Papers 24-053/VI, Tinbergen Institute.
    5. Jevan Cherniwchan & M.Scott Taylor, 2022. "International Trade and the Environment: Three Remaining Empirical Challenges," Carleton Economic Papers 22-03, Carleton University, Department of Economics.
    6. Unfried, Kerstin & Wang, Feicheng, 2024. "Importing air pollution? Evidence from China’s plastic waste imports," Journal of Environmental Economics and Management, Elsevier, vol. 125(C).
    7. Cheng, Haitao, 2024. "Domestic versus international emissions trading with capital mobility," Resource and Energy Economics, Elsevier, vol. 77(C).
    8. Don Fullerton, 2024. "The Circular Economy," CESifo Working Paper Series 11109, CESifo.
    9. 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.
    10. Qian Zhao & Chi-Wei Su, 2023. "The Nexus Between Air Pollution and Outward Foreign Direct Investment," SAGE Open, , vol. 13(1), pages 21582440221, January.

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    More about this item

    Keywords

    pollution-haven hypothesis; environmental regulation; infant health;
    All these keywords.

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • 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
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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