Research output

Exporting Pollution

Research output: Working paperProfessional

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Abstract

Despite awareness of the detrimental impact of CO2 pollution on the world climate, countries vary widely in how they design and enforce environmental laws. Using novel micro data about firms’ CO2 emissions levels in their home and foreign countries, we document that firms headquartered in countries with strict environmental policies perform their polluting activities abroad in countries with relatively weaker policies. These effects are stronger for firms in high-polluting industries and with poor corporate governance characteristics. Although firms export pollution, they nevertheless emit less overall CO2 globally in response to strict environmental policies at home.

    Research areas

  • Pollution, Production, Pollution Haven Hypothesis
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Details

Original languageEnglish
DOIs
StatePublished - Sep 2018

Publication series

NameFisher College of Business Working Paper
PublisherOhio State University
No.No. 2018-03-20