North-South Displacement Effects of Environmental Regulation: The Case of Battery Recycling

This study examines the effect of a tightening US air quality standard for lead in 2009 on relocation battery recycling to Mexico and infant health Mexico. In United States, airborne dropped sharply near affected plants, most which were battery-recycling plants. Exports used batteries rose markedly. Mexico, production increased at plants relative comparable industries, birth outcomes deteriorated within two miles those areas slightly farther away. The case provides salient example pollution-haven between developed developing country. (JEL F18, I12, J13, O15, Q51, Q53, Q58)