Do environmental policies affect global value chains?: A new perspective on the pollution haven hypothesis

"Increasing international fragmentation of production has reinforced fears that industrial activity may flee to countries with laxer environmental policies – in line with the so-called Pollution Haven Hypothesis (PHH). If PHH effects are strong, domestic responses to environmental challenges ma...

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Main Authors: Kozluk, Tomasz, Timiliotis, Christina
Institution:ETUI-European Trade Union Institute
Format: TEXT
Language:English
Published: Paris 2016
OECD
Subjects:
Online Access:https://www.labourline.org/KENTIKA-19104832124919220149-Do-environmental-policies-affe.htm
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author Kozluk, Tomasz
Timiliotis, Christina
author_facet Kozluk, Tomasz
Timiliotis, Christina
collection Library items
description "Increasing international fragmentation of production has reinforced fears that industrial activity may flee to countries with laxer environmental policies – in line with the so-called Pollution Haven Hypothesis (PHH). If PHH effects are strong, domestic responses to environmental challenges may prove ineffective or meet strong resistance. Using a gravity model of bilateral trade in manufacturing industries for selected OECD and BRIICS countries over 1990s-2000s, this paper studies how exports are related to national environmental policies. Environmental policies are not found to be a major driver of international trade patterns, but have some significant effects on specialisation. More stringent domestic policies have no significant effect on overall trade in manufactured goods, but are linked to a comparative disadvantage in "dirty" industries, and a corresponding advantage in "cleaner" industries. The effects are stronger for the domestic component of exports than for gross exports, yet notably smaller than the effects of e.g. trade liberalisation."
format TEXT
id 19104832124919220149_c1890a2ee2724fb198a14f16e8297249
institution ETUI-European Trade Union Institute
is_hierarchy_id 19104832124919220149_c1890a2ee2724fb198a14f16e8297249
is_hierarchy_title Do environmental policies affect global value chains?: A new perspective on the pollution haven hypothesis
language English
physical 64 p.
Digital
publishDate 2016
publisher Paris
OECD
spellingShingle Kozluk, Tomasz
Timiliotis, Christina
environmental policy
industrial policy
manufacturing industry
pollution
trade liberalization
value chains
Do environmental policies affect global value chains?: A new perspective on the pollution haven hypothesis
title Do environmental policies affect global value chains?: A new perspective on the pollution haven hypothesis
topic environmental policy
industrial policy
manufacturing industry
pollution
trade liberalization
value chains
url https://www.labourline.org/KENTIKA-19104832124919220149-Do-environmental-policies-affe.htm