NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Sources of Comparative Advantage in Polluting Industries

Fernando Broner, Paula Bustos, Vasco M. Carvalho

NBER Working Paper No. 18337
Issued in August 2012
NBER Program(s):   EEE   ITI

We study the determinants of comparative advantage in polluting industries. We combine data on environmental policy at the country level with data on pollution intensity at the industry level to show that countries with laxer environmental regulation have a comparative advantage in polluting industries. Further, we address the potential problem of reverse causality. We propose an instrument for environmental regulation based on meteorological determinants of pollution dispersion identi...ed by the atmospheric pollution literature. We find that the effect of environmental regulation on the pattern of trade is causal and comparable in magnitude to the effect of physical and human capital.

download in pdf format
   (504 K)

email paper

This paper is available as PDF (504 K) or via email.

Supplementary materials for this paper:

This paper was revised on December 13, 2012

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w18337

Users who downloaded this paper also downloaded these:
Greenstone, List, and Syverson w18392 The Effects of Environmental Regulation on the Competitiveness of U.S. Manufacturing
Levinson and Taylor w10629 Unmasking the Pollution Haven Effect
Branstetter and Pizer w18214 Facing the Climate Change Challenge in a Global Economy
Costinot and Donaldson w17969 Ricardo's Theory of Comparative Advantage: Old Idea, New Evidence
Hornbeck and Keskin w18416 Does Agriculture Generate Local Economic Spillovers? Short-run and Long-run Evidence from the Ogallala Aquifer
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us