Globalization and Greenhouse Gas Emissions: Evidence from the United States
The US has been a global leader in regulating local air pollution and a global laggard in regulating greenhouse gases (GHGs). For decades, critics of US policy have expressed fears that stringent US regulations on local air pollution would lead to pollution havens overseas. Prior research, suggests that has not happened. But what about the converse fear? Are the less stringent US climate regulations causing the US to become a pollution haven for other countries’ GHG-intensive industries? We provide a decomposition of US manufacturing GHG emissions and find no evidence of offshoring either to or from the United States since 1990.
This is a draft chapter for the forthcoming book, Handbook on Trade Policy and Climate Change, Edward Elgar Publishing, edited by Michael Jakob. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.
Arik Levinson has been receiving compensation for serving on the EPA Science Advisory Board's Economic Guidelines Review Panel.