Pollution abatement cost savings and FDI inflows to polluting sectors in China

2007 ◽  
Vol 12 (6) ◽  
pp. 775-798 ◽  
Author(s):  
WENHUA DI

ABSTRACTThis paper uses a nested logit model to examine whether potential pollution abatement cost savings adjusted by institutional and socio-economic conditions influence the location choices of Foreign Direct Investment (FDI) among Chinese provinces. It incorporates individual polluting firms’ characteristics instead of looking only at location attributes. The results show that (i) FDI firms in polluting industries tend to locate in provinces with higher potential abatement costs savings adjusted for local environmental regulation; (ii) relatively dirtier firms are more likely to locate in less developed provinces or provinces with fewer similar polluting industries; (iii) firms in pollution-intensive industries are more sensitive to regulation and development status than firms in non-polluting industries; and (iv) firms tend to locate in provinces where they have more bargaining power with local governments. These findings suggest the existence of domestic pollution havens in China.

2001 ◽  
Vol 6 (1) ◽  
pp. 103-122 ◽  
Author(s):  
BISHWANATH GOLDAR ◽  
SMITA MISRA ◽  
BADAL MUKHERJI

Formulation and estimation of a correctly specified abatement cost function would be central to policy formulation regarding imposing taxes or user-fees as well as of sharing social cost in the presence of environmental pollution. Often in research, the output of an abatement activity for water pollution appears to us not to have been clearly specified. This activity is very distinct from whatever is the actual product of the plant. We propose in this paper that the output is only and exclusively the reduction in the level of the pollutant in the outflow from the plant and illustrate this with primary data for small-scale factories in Nandesari Industrial Estate in Gujarat, India. The cost function estimates provide evidence of significant scale economies and high marginal abatement cost in wastewater treatment by small-scale factories.


2020 ◽  
Vol 714 ◽  
pp. 136690 ◽  
Author(s):  
Adewale Henry Adenuga ◽  
John Davis ◽  
George Hutchinson ◽  
Myles Patton ◽  
Trevor Donnellan

Energy Policy ◽  
2010 ◽  
Vol 38 (5) ◽  
pp. 2255-2261 ◽  
Author(s):  
Samudra Vijay ◽  
Joseph F. DeCarolis ◽  
Ravi K. Srivastava

2013 ◽  
Vol 50 (3) ◽  
pp. 777-790 ◽  
Author(s):  
Laijun Zhao ◽  
Wei Huang ◽  
H. Oliver Gao ◽  
Jian Xue ◽  
Changmin Li ◽  
...  

Author(s):  
Luis Gautier

Abstract The presence of nonzero conjectural variations in pollution abatement and output make emission taxes less effective with respect to reducing emissions. This has implications for the characterization of the optimal emission tax, particularly in an international context where there are large asymmetries in pollution intensities. A higher degree of collusion in output between polluting firms results in higher emissions taxes in the non-cooperative equilibrium. In contrast, a higher degree of collusion in abatement between polluting firms results in lower emissions taxes in the non-cooperative equilibrium. These results rely on the presence of nonzero conjectural variations and large asymmetries in pollution intensities across countries. The analysis is relevant to the design of international environmental policy, including cases where countries face increasing global competition and damages from rising global emissions.


2011 ◽  
Vol 42 (4) ◽  
pp. 481-497 ◽  
Author(s):  
Hyunsang Ha ◽  
Richard C. Feiock

This article investigates why cities use fiscal analyses such as cost–benefit analysis and/or fiscal impact analysis to manage offers of economic development incentives to business. We advance an approach to understanding economic development subsidies and control mechanisms that integrate political bargaining and network theories. Municipal bargaining power, institutional incentives, and organizational networks are hypothesized to influence development subsidy decisions. The results confirm that local governments’ bargaining power and political institutions influence the degree to which cities use fiscal analyses. In addition, public/private organizational networks that bridge public and private sectors by linking quasigovernmental organizations and local governments increase information and credibility thus leading to greater use of fiscal analyses.


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