Do Environmental Regulations Affect the Decision to Export?
American Economic Journal: Economic Policy
vol. 14,
no. 2, May 2022
(pp. 125-60)
Abstract
This paper investigates how a common form of environmental regulation—air quality standards—affects exporters. We develop a simple theoretical model to show how the design of these standards causes (i) some firms to stop exporting and (ii) a reduction in the export volumes of affected continuing exporters. We exploit quasi-experimental variation resulting from the design of Canadian air quality standards to test these predictions empirically. Our estimates confirm our model's predictions: we find that for the most affected manufacturers, regulation reduced export volumes by 32 percent and increased the likelihood plants stop exporting by 5 percentage points.Citation
Cherniwchan, Jevan, and Nouri Najjar. 2022. "Do Environmental Regulations Affect the Decision to Export?" American Economic Journal: Economic Policy, 14 (2): 125-60. DOI: 10.1257/pol.20200290Additional Materials
JEL Classification
- D12 Consumer Economics: Empirical Analysis
- F14 Empirical Studies of Trade
- F18 Trade and Environment
- Q53 Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
- Q58 Environmental Economics: Government Policy
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