Environmental regulation, foreign direct investment and pollution
Identifieur interne : 000894 ( Main/Exploration ); précédent : 000893; suivant : 000895Environmental regulation, foreign direct investment and pollution
Auteurs : Sonia Ben Kheder [France]Source :
Descripteurs français
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English descriptors
Abstract
Since the 1990s, a close relationship has been established between domestic environmental policies and trade policies, and has rapidly given rise to a debate on trade and environment. A key aspect of this debate is related to the impact of environmental regulations' stringency differences between countries on the international competitiveness and location of firms. This issue has been largely studied in literature and is known as the Pollution Haven Hypothesis. However, it has not yet been explicitly proven. A second major issue related to the debate on trade and environment, however neglected in literature, is the effect of these differentiated regulations on pollution levels. In this thesis, organized into four chapters, both issues are investigated. In the first chapter, countries' environmental policies are examined with accuracy, their heterogeneity constituting the foundation of the pollution haven hypothesis. The second chapter develops a theoretical model highlighting the impact of environmental regulation on firms' location decisions. In the third chapter, this theoretical model is tested, and results show a significant effect of environmental policies on the location decisions of French firms. Finally, the last chapter empirically assesses the impact of the different mechanisms at play on pollution emissions. It appears that an increase of foreign direct investment increases pollution emissions in host countries but is consistent with a reduction of pollution intensity.
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Le document en format XML
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<front><div type="abstract" xml:lang="en">Since the 1990s, a close relationship has been established between domestic environmental policies and trade policies, and has rapidly given rise to a debate on trade and environment. A key aspect of this debate is related to the impact of environmental regulations' stringency differences between countries on the international competitiveness and location of firms. This issue has been largely studied in literature and is known as the Pollution Haven Hypothesis. However, it has not yet been explicitly proven. A second major issue related to the debate on trade and environment, however neglected in literature, is the effect of these differentiated regulations on pollution levels. In this thesis, organized into four chapters, both issues are investigated. In the first chapter, countries' environmental policies are examined with accuracy, their heterogeneity constituting the foundation of the pollution haven hypothesis. The second chapter develops a theoretical model highlighting the impact of environmental regulation on firms' location decisions. In the third chapter, this theoretical model is tested, and results show a significant effect of environmental policies on the location decisions of French firms. Finally, the last chapter empirically assesses the impact of the different mechanisms at play on pollution emissions. It appears that an increase of foreign direct investment increases pollution emissions in host countries but is consistent with a reduction of pollution intensity.</div>
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