Environmental regulation and industry location in Europe

A. Mulatu, R. Gerlagh, D. Rigby, A. Wossink

Research output: Contribution to journalArticleScientificpeer-review

Abstract

This paper estimates the effect of environmental regulation on industry location and compares it with other determinants of location such as agricultural, education and R&D country characteristics. The analysis is based on a general empirical trade model that captures the interaction between country and industry characteristics in determining industry location. The Johnson–Neyman technique is used to fully explicate the nature of the conditional interactions. The model is applied to data on 16 manufacturing industries from 13 European countries. The empirical results indicate that the pollution haven effect is present and that the relative strength of such an effect is of about the same magnitude as other determinants of industry location. A significant negative effect on industry location is observed only at relatively high levels of industry pollution intensity.
Original languageEnglish
Pages (from-to)459-479
JournalEnvironmental and Resource Economics
Volume45
Issue number4
Publication statusPublished - 2010

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industry
pollution effect
regulation
Europe
Environmental regulation
Industry location
manufacturing
education
pollution
effect
Interaction
Industry
Manufacturing industries
Empirical results
Pollution havens
Pollution
Education
Industry characteristics
European countries

Cite this

Mulatu, A. ; Gerlagh, R. ; Rigby, D. ; Wossink, A. / Environmental regulation and industry location in Europe. In: Environmental and Resource Economics. 2010 ; Vol. 45, No. 4. pp. 459-479.
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Mulatu, A, Gerlagh, R, Rigby, D & Wossink, A 2010, 'Environmental regulation and industry location in Europe', Environmental and Resource Economics, vol. 45, no. 4, pp. 459-479.

Environmental regulation and industry location in Europe. / Mulatu, A.; Gerlagh, R.; Rigby, D.; Wossink, A.

In: Environmental and Resource Economics, Vol. 45, No. 4, 2010, p. 459-479.

Research output: Contribution to journalArticleScientificpeer-review

TY - JOUR

T1 - Environmental regulation and industry location in Europe

AU - Mulatu, A.

AU - Gerlagh, R.

AU - Rigby, D.

AU - Wossink, A.

PY - 2010

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N2 - This paper estimates the effect of environmental regulation on industry location and compares it with other determinants of location such as agricultural, education and R&D country characteristics. The analysis is based on a general empirical trade model that captures the interaction between country and industry characteristics in determining industry location. The Johnson–Neyman technique is used to fully explicate the nature of the conditional interactions. The model is applied to data on 16 manufacturing industries from 13 European countries. The empirical results indicate that the pollution haven effect is present and that the relative strength of such an effect is of about the same magnitude as other determinants of industry location. A significant negative effect on industry location is observed only at relatively high levels of industry pollution intensity.

AB - This paper estimates the effect of environmental regulation on industry location and compares it with other determinants of location such as agricultural, education and R&D country characteristics. The analysis is based on a general empirical trade model that captures the interaction between country and industry characteristics in determining industry location. The Johnson–Neyman technique is used to fully explicate the nature of the conditional interactions. The model is applied to data on 16 manufacturing industries from 13 European countries. The empirical results indicate that the pollution haven effect is present and that the relative strength of such an effect is of about the same magnitude as other determinants of industry location. A significant negative effect on industry location is observed only at relatively high levels of industry pollution intensity.

M3 - Article

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SP - 459

EP - 479

JO - Environmental and Resource Economics

JF - Environmental and Resource Economics

SN - 0924-6460

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