How does the industry mobility affect pollution industry transfer in China: Empirical test on Pollution Haven Hypothesis and Porter Hypothesis

2019 ◽  
Vol 217 ◽  
pp. 105-115 ◽  
Author(s):  
Jianmin Dou ◽  
Xu Han
2015 ◽  
Vol 6 (2) ◽  
pp. 177-198 ◽  
Author(s):  
Zhongyi Xiao

Purpose – This paper aims to, under the framework of the pollution haven hypothesis (PHH), test the theory that foreign direct investment (FDI) creates an intra-host country pollution haven in developing nations by studying the contemporary case of China. Design/methodology/approach – This empirical analysis has used a panel dataset of 30 provinces that was analyzed for the period of 1997-2011. An Oaxaca decomposition was also implemented to examine the effects of environmental stringency on regional pollution. Findings – The estimates indicate that openness to FDI generally appears to be good for the environment. The results of estimation show that the western region of China has developed a potential “comparative advantage” in pollution-intensive industries, thanks to the strong incentive of economic expansion. However, further estimates concerning the location decisions of FDI suggest that the providers of FDI still prefer to locate in the coastal regions of China, where a tighter environmental regulation policy has been imposed. The findings suggest that the better infrastructure and technology spillover of environmental policy-making might be more attractive to FDI than comparatively weak environmental stringency. Originality/value – This study applies a model advanced in previous theoretical literature which divides the effects of trade into the categories of scale, technique and composition. It also contributes to the understanding of the PHH in the context of intra-host country analysis.


2019 ◽  
Vol 10 (3) ◽  
pp. 48-58
Author(s):  
Folorunso Sunday Ayadi ◽  
Sunday Mlanga ◽  
Monday Isaac Ikpor ◽  
Robert A. Nnachi

Abstract This study set out to investigate the reality or otherwise of the pollution haven hypothesis in Nigeria using data from 1970 to 2017 and using the autoregressive distributed lag (ARDL) models both in the short and long run. The study used FDI inflows as measure of economic activity and carbon dioxide emission as a measure of regulatory stringency. The study finds the previous FDI inflows as a significant determinant of current FDI both in the short and long run. This implies that the more FDI an economy attracts, the more potentials it has to further attract more FDI. Population, a measure of demand condition of the host economy is positively and significantly related to FDI inflows both in the short run and in the long run. Trade openness has a positively significant impact on FDI inflows in the long run, meaning that globalization encourages FDI inflows. A year lag of the FDI has a positively significant impact on FDI inflows in the long run. This suggest that pollution haven hypothesis which states that industries with polluting technologies tend to relocate to countries or areas (pollution havens) with lax or less stringent environmental regulations is a reality for Nigeria. The implication of this is that government of Nigeria must weigh the beneficial impact of FDI inflows against the pollution impact of ‘dirty’ FDI before deciding or setting its environmental policy.


2021 ◽  
Vol 78 (1) ◽  
pp. 177-199
Author(s):  
Claudia Ranocchia ◽  
Luca Lambertini

AbstractThe Porter hypothesis and the pollution haven hypothesis seem to predict opposite reactions by firms facing environmental regulation, as the first invokes the arising of a win–win solution while the second envisages the possibility for firms to flee abroad. We illustrate the possibility of designing policies (taking the form of either emission taxation or environmental standards) able to eliminate firms’ incentives to relocate their plants abroad and create a parallel incentive for them to deliver a win–win solution by investing either in replacement technologies under emission taxation, or in abatement technologies under an environmental standard. This is worked out in a Cournot supergame in which firms may activate the highest level of collusion compatible with their intertemporal preferences.


Author(s):  
Ke Zhang ◽  
Xingwei Wang

With the development of trade liberalization, the pollutants emissions embodied in global trade are increasing. The pollution haven hypothesis caused by trade has aroused wide attention. The fragmentation of international production has reshaped trade patterns. The proportion of intermediate product trade in global trade is increasing. However, little has been done to study the pollution haven of different pollutants under different trade patterns. In this paper, major environmental pollutants CO2 (carbon dioxide), SO2 (sulfur dioxide), and NOx (nitrogen oxides) are selected as the research objects. This study investigated the global pollution haven phenomenon in 43 countries and 56 major industries from 2000 to 2014. Based on the MRIO model, the trade mode is divided into three specific patterns: final product trade, intermediate product trade in the last stage of production, and the trade related to the global value chain. The results show that trade liberalization could reduce global CO2, SO2, and NOx emissions, and intermediate product trade has a more significant emission reduction effect than final product trade. Trade’s impacts on each country are various, and the main drivers are also different. For example, the European Union avoids becoming a pollution haven mainly through the trade related to the global value chain. The suppressed emissions under this trade pattern are 71.8 Mt CO2, 2.2 Mt SO2, 2.2 Mt NOx. India avoids most pollutants emissions through intermediate product trade. China has become the most serious pollution haven through final product trade. The trade pattern could increase China 829.4 Mt CO2, 4.5 Mt SO2, 2.6 Mt NOx emissions in 2014.


Energy ◽  
2017 ◽  
Vol 124 ◽  
pp. 706-719 ◽  
Author(s):  
Sakiru Adebola Solarin ◽  
Usama Al-Mulali ◽  
Ibrahim Musah ◽  
Ilhan Ozturk

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