Unraveling the Worldwide Pollution Haven Effect

This paper contributes to the debate on the existence of pollution haven effects by systematically measuring the pollution content of trade (measured by the pollution content of imports, PCI) and decomposing it into three components-a "deep" component (unrelated to the environmental debate...

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Main Authors:	Grether, Jean-Marie, Mathys, Nicole A., de Melo, Jaime
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2012
Subjects:	ABATEMENT ABATEMENT COST ABATEMENT COSTS ACID RAIN AIR BARRIER BIOCHEMICAL OXYGEN DEMAND COAL COMBUSTION COMPARATIVE ADVANTAGE DEVELOPED COUNTRIES DIRTY INDUSTRY DIRTY SECTORS DOMESTIC ENVIRONMENTAL POLICIES ECOLOGICAL ECONOMICS ECONOMIC ACTIVITY ECONOMIC ANALYSIS ECONOMIC DEVELOPMENT ECONOMIC GROWTH EMISSION EMISSIONS EMPIRICAL ANALYSIS ENVIRONMENT POLICIES ENVIRONMENTAL ENVIRONMENTAL ECONOMICS ENVIRONMENTAL KUZNETS ENVIRONMENTAL POLICIES ENVIRONMENTAL POLICY ENVIRONMENTAL QUALITY ENVIRONMENTAL REGULATION ENVIRONMENTAL REGULATIONS ENVIRONMENTAL STANDARDS EQUILIBRIUM EXPORT EXTERNALITIES FACTORIES FIXED EFFECTS FOSSIL FUEL GASOLINE HUMAN DEVELOPMENT IMPORTS INCOME INDUSTRIAL POLLUTION LABOR PRODUCTIVITY LAKES LEAD EMISSIONS METAL MICROORGANISMS OIL ORGANIC MATTER OXYGEN PASTURES PH POLITICAL ECONOMY POLLUTANTS POLLUTION POLLUTION CONTROL POLLUTION HAVENS POLLUTION INTENSITY SEWAGE STREAMS TOXIC CHEMICALS TRANSPORT TRANSPORT COSTS TRINIDAD AND TOBAGO TRUE WASTE
Online Access:	http://documents.worldbank.org/curated/en/2006/11/7155058/unraveling-worldwide-pollution-effect http://hdl.handle.net/10986/9021

id	okr-10986-9021
recordtype	oai_dc
spelling	okr-10986-90212021-04-23T14:02:41Z Unraveling the Worldwide Pollution Haven Effect Grether, Jean-Marie Mathys, Nicole A. de Melo, Jaime ABATEMENT ABATEMENT COST ABATEMENT COSTS ACID RAIN AIR BARRIER BIOCHEMICAL OXYGEN DEMAND COAL COMBUSTION COMPARATIVE ADVANTAGE DEVELOPED COUNTRIES DIRTY INDUSTRY DIRTY SECTORS DOMESTIC ENVIRONMENTAL POLICIES ECOLOGICAL ECONOMICS ECONOMIC ACTIVITY ECONOMIC ANALYSIS ECONOMIC DEVELOPMENT ECONOMIC GROWTH EMISSION EMISSIONS EMPIRICAL ANALYSIS ENVIRONMENT POLICIES ENVIRONMENTAL ENVIRONMENTAL ECONOMICS ENVIRONMENTAL KUZNETS ENVIRONMENTAL POLICIES ENVIRONMENTAL POLICY ENVIRONMENTAL QUALITY ENVIRONMENTAL REGULATION ENVIRONMENTAL REGULATIONS ENVIRONMENTAL STANDARDS EQUILIBRIUM EXPORT EXTERNALITIES FACTORIES FIXED EFFECTS FOSSIL FUEL GASOLINE HUMAN DEVELOPMENT IMPORTS INCOME INDUSTRIAL POLLUTION LABOR PRODUCTIVITY LAKES LEAD EMISSIONS METAL MICROORGANISMS OIL ORGANIC MATTER OXYGEN PASTURES PH POLITICAL ECONOMY POLLUTANTS POLLUTION POLLUTION CONTROL POLLUTION HAVENS POLLUTION INTENSITY SEWAGE STREAMS TOXIC CHEMICALS TRANSPORT TRANSPORT COSTS TRINIDAD AND TOBAGO TRUE WASTE This paper contributes to the debate on the existence of pollution haven effects by systematically measuring the pollution content of trade (measured by the pollution content of imports, PCI) and decomposing it into three components-a "deep" component (unrelated to the environmental debate but including variables traditionally present in the gravity model) and two components (factor endowments and environmental policies) that occupy center stage in the debate on trade and the environment. The decomposition is carried out for 1986-88 for an extensive data set covering 10 pollutants, 48 countries, and 79 ISIC 4-digit sectors. Illustrative decompositions presented for three of the 10 pollutants in the data set indicate a significant pollution haven effect which increases the PCI of the North because of stricter environmental regulations in the North. At the same time, the factor endowment effect decreases the PCI of the North as the North is relatively well-endowed in capital and pollution-intensive activities are also capital-intensive. On a global scale, because the bulk of trade is intraregional with a high North-North share, these effects are small relative to the "deep" determinants of the worldwide pollution content of trade. In sum, although the impact has been stronger on vertical (North-South) trade flows, differences in factor endowments and environmental policies have only marginally affected the pollution content of world trade during the 1986-88 period. 2012-06-26T14:41:23Z 2012-06-26T14:41:23Z 2006-11 http://documents.worldbank.org/curated/en/2006/11/7155058/unraveling-worldwide-pollution-effect http://hdl.handle.net/10986/9021 English en_US Policy Research Working Paper; No. 4047 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	ABATEMENT ABATEMENT COST ABATEMENT COSTS ACID RAIN AIR BARRIER BIOCHEMICAL OXYGEN DEMAND COAL COMBUSTION COMPARATIVE ADVANTAGE DEVELOPED COUNTRIES DIRTY INDUSTRY DIRTY SECTORS DOMESTIC ENVIRONMENTAL POLICIES ECOLOGICAL ECONOMICS ECONOMIC ACTIVITY ECONOMIC ANALYSIS ECONOMIC DEVELOPMENT ECONOMIC GROWTH EMISSION EMISSIONS EMPIRICAL ANALYSIS ENVIRONMENT POLICIES ENVIRONMENTAL ENVIRONMENTAL ECONOMICS ENVIRONMENTAL KUZNETS ENVIRONMENTAL POLICIES ENVIRONMENTAL POLICY ENVIRONMENTAL QUALITY ENVIRONMENTAL REGULATION ENVIRONMENTAL REGULATIONS ENVIRONMENTAL STANDARDS EQUILIBRIUM EXPORT EXTERNALITIES FACTORIES FIXED EFFECTS FOSSIL FUEL GASOLINE HUMAN DEVELOPMENT IMPORTS INCOME INDUSTRIAL POLLUTION LABOR PRODUCTIVITY LAKES LEAD EMISSIONS METAL MICROORGANISMS OIL ORGANIC MATTER OXYGEN PASTURES PH POLITICAL ECONOMY POLLUTANTS POLLUTION POLLUTION CONTROL POLLUTION HAVENS POLLUTION INTENSITY SEWAGE STREAMS TOXIC CHEMICALS TRANSPORT TRANSPORT COSTS TRINIDAD AND TOBAGO TRUE WASTE
spellingShingle	ABATEMENT ABATEMENT COST ABATEMENT COSTS ACID RAIN AIR BARRIER BIOCHEMICAL OXYGEN DEMAND COAL COMBUSTION COMPARATIVE ADVANTAGE DEVELOPED COUNTRIES DIRTY INDUSTRY DIRTY SECTORS DOMESTIC ENVIRONMENTAL POLICIES ECOLOGICAL ECONOMICS ECONOMIC ACTIVITY ECONOMIC ANALYSIS ECONOMIC DEVELOPMENT ECONOMIC GROWTH EMISSION EMISSIONS EMPIRICAL ANALYSIS ENVIRONMENT POLICIES ENVIRONMENTAL ENVIRONMENTAL ECONOMICS ENVIRONMENTAL KUZNETS ENVIRONMENTAL POLICIES ENVIRONMENTAL POLICY ENVIRONMENTAL QUALITY ENVIRONMENTAL REGULATION ENVIRONMENTAL REGULATIONS ENVIRONMENTAL STANDARDS EQUILIBRIUM EXPORT EXTERNALITIES FACTORIES FIXED EFFECTS FOSSIL FUEL GASOLINE HUMAN DEVELOPMENT IMPORTS INCOME INDUSTRIAL POLLUTION LABOR PRODUCTIVITY LAKES LEAD EMISSIONS METAL MICROORGANISMS OIL ORGANIC MATTER OXYGEN PASTURES PH POLITICAL ECONOMY POLLUTANTS POLLUTION POLLUTION CONTROL POLLUTION HAVENS POLLUTION INTENSITY SEWAGE STREAMS TOXIC CHEMICALS TRANSPORT TRANSPORT COSTS TRINIDAD AND TOBAGO TRUE WASTE Grether, Jean-Marie Mathys, Nicole A. de Melo, Jaime Unraveling the Worldwide Pollution Haven Effect
relation	Policy Research Working Paper; No. 4047
description	This paper contributes to the debate on the existence of pollution haven effects by systematically measuring the pollution content of trade (measured by the pollution content of imports, PCI) and decomposing it into three components-a "deep" component (unrelated to the environmental debate but including variables traditionally present in the gravity model) and two components (factor endowments and environmental policies) that occupy center stage in the debate on trade and the environment. The decomposition is carried out for 1986-88 for an extensive data set covering 10 pollutants, 48 countries, and 79 ISIC 4-digit sectors. Illustrative decompositions presented for three of the 10 pollutants in the data set indicate a significant pollution haven effect which increases the PCI of the North because of stricter environmental regulations in the North. At the same time, the factor endowment effect decreases the PCI of the North as the North is relatively well-endowed in capital and pollution-intensive activities are also capital-intensive. On a global scale, because the bulk of trade is intraregional with a high North-North share, these effects are small relative to the "deep" determinants of the worldwide pollution content of trade. In sum, although the impact has been stronger on vertical (North-South) trade flows, differences in factor endowments and environmental policies have only marginally affected the pollution content of world trade during the 1986-88 period.
format	Publications & Research :: Policy Research Working Paper
author	Grether, Jean-Marie Mathys, Nicole A. de Melo, Jaime
author_facet	Grether, Jean-Marie Mathys, Nicole A. de Melo, Jaime
author_sort	Grether, Jean-Marie
title	Unraveling the Worldwide Pollution Haven Effect
title_short	Unraveling the Worldwide Pollution Haven Effect
title_full	Unraveling the Worldwide Pollution Haven Effect
title_fullStr	Unraveling the Worldwide Pollution Haven Effect
title_full_unstemmed	Unraveling the Worldwide Pollution Haven Effect
title_sort	unraveling the worldwide pollution haven effect
publisher	World Bank, Washington, DC
publishDate	2012
url	http://documents.worldbank.org/curated/en/2006/11/7155058/unraveling-worldwide-pollution-effect http://hdl.handle.net/10986/9021
_version_	1764406741336850432

Unraveling the Worldwide Pollution Haven Effect

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