Environmental regulation and competitiveness: Evidence from Romania

Arbeitspapier

According to the pollution haven hypotheses differences in environmental regulation affect trade flows and plant location. Specifically, environmental stringency should decrease exports and increase imports of dirty goods. This paper estimates a gravity model to establish whether the implementation of more stringent regulations in Romania has indeed affected its competitiveness and decreased exports towards its European trading partners. Our findings do not provide empirical support to the pollution haven hypothesis, i.e. environmental stringency is not found to affect significantly total trade, or its components (pollution intensive trade and pollution intensive trade related to non-resource-based trade).

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 3916

Classification and Topics

• Classification: Wirtschaft ; Empirical Studies of Trade ; Renewable Resources and Conservation: Government Policy
• Subject: environmental stringency ; competitiveness ; gravity model

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Arouri, Mohamed El Hedi ; Caporale, Guglielmo Maria ; Rault, Christophe ; Sova, Robert ; Sova, Anamaria
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2012

Further information

• Handle: http://hdl.handle.net/10419/62322
• Last update: 10.03.2025, 11:43 AM CET