This paper studies the interplay between two groups of countries, large and small, which compete sequentially on corporate taxes environmental regulations to attract imperfectly mobile firms. We show that in general, small countries undercut terms taxes. The choose be both tax pollution havens when they are less concerned about environment than capital integration is low. never act as havens. F...

The relationship between trade expansion and environmental protection has been characterised by two extreme viewpoints – promoting trade worsens environmental conditions and higher environmental standards impose an economic cost. Two conflicting hypothesis emerge from the debate. One manifestation of the above-described trade off is the hypothesis that increasing trade may encourage developing ...

Abstract The Porter hypothesis and the pollution haven seem to predict opposite reactions by firms facing environmental regulation, as first invokes arising of a win–win solution while second envisages possibility for flee abroad. We illustrate designing policies (taking form either emission taxation or standards) able eliminate firms’ incentives relocate their plants abroad create parallel inc...

Does foreign direct investment (FDI) migration into Nigeria and Sierra Leone generate a climate change scare (CCS) based on the pollution haven-halo hypothesis? The quasi-experimental design study utilized data from world development indicator, 1970-2019 using nonlinear autoregressive distributed lag (NARDL) model to estimate dynamic impact of FDI CO2 emissions (a proxy for CCS). found that in ...

This study aims to demonstrate the validity of Pollution Haven Hypothesis (PHH) for BRICS nations by revealing empirical relationship between foreign direct investment (FDI), air pollution, and environmental regulations. At same time, objectives are based on BRICS′ COP26 goals focused mobilizing climate finance annually. The SDGs agenda 2030 seeks implement effective change planning management....

This paper uses both theory and empirical work to examine the effect of environmental regulations on trade flows. We develop a simple economic model to demonstrate how unobserved heterogeneity, endogeneity and aggregation issues bias measurements of the relationship between regulatory costs and trade. We estimate a reduced-form of the model using data on U.S. regulations and net trade flows amo...

The pursuit of sustainable development requires balancing the objectives of FDI, Trade, economic growth and environmental protection. Achieving a balance between these often-conflicting priorities is difficult enough at the national level, where competing interests are at least grounded in a common environmental, social and economic context. At the international level, where different countries...