EU air pollution regulation: A breath of fresh air for Eastern European polluting industries? |
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| Institution: | 1. School of Economics, University College Dublin, Belfield, Dublin 4, Ireland;2. Erudite, University of Paris-Est Créteil. 61 av du Général de Gaulle, 94010 Créteil Cedex, France;1. Department of Economics, Michigan State University, United States;2. Lamont-Doherty Earth Observatory, Columbia University, United States;3. World Bank, United States;4. Department of Energy and Environment, TERI University, India;1. Department of Economics, Sewanee: The University of the South, 735 University Avenue, Sewanee, TN 37383, USA;2. Department of Economics and Trachtenberg School of Public Policy and Public Administration, The George Washington University, 2115 G Street, NW, Washington, DC 20052, USA;1. Resources for the Future, Gothenburg University, FEEM, CESifo Research Network;2. Statistics Norway, CREE and CESifo Research Network;3. Norwegian University of Life Sciences, CREE and CESifo Research Network;1. Toulouse School of Economics, University of Toulouse Capitol (INRA), France;2. University of Gothenburg, Sweden |
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| 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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| Keywords: | Air Pollution Environmental regulation Trade |
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