U.S. Trade in Toxics: The Case of Chlorodifluoromethane (HCFC-22)
27 Pages Posted: 21 Sep 2009
Date Written: September 1, 2009
Abstract
This paper explores whether environmental regulation affects where pollution-intensive goods are produced. Here we examine chlorodifluoromethane (HCFC-22), a chemical designated as toxic in 1994 by the U.S. Environmental Protection Agency’s Toxics Release Inventory (TRI). Trends show a decline in the number of domestic producers of this chemical, a decline in the number of manufacturing facilities using it, and an increase in the number (and share) of facilities claiming to import it. Transaction-level trade data show an increase in the import of HCFC-22 imports since its TRI listing - an increase that is faster than that of all non-TRI listed chemicals. This is suggestive of a pollution haven effect. Meanwhile, we find that the vast majority of U.S. imports of HCFC-22 come from OECD countries. However, an increase in the share of imports from non-OECD countries since the chemical’s listing suggests a shift of production to countries with more lax environmental standards. While the findings here are suggestive of regulatory effects, more rigorous analyses are needed to rule out other possible explanations.
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Trade, Growth and the Environment
By Brian R. Copeland and M. Scott Taylor
-
Trade, Spatial Separation, and the Environment
By Brian R. Copeland and M. Scott Taylor
-
Unmasking the Pollution Haven Effect
By Arik Levinson and M. Scott Taylor
-
International Trade and the Environment: A Framework for Analysis
By Brian R. Copeland and M. Scott Taylor
-
Moving to Greener Pastures? Multinationals and the Pollution Haven Hypothesis
-
Moving to Greener Pastures? Multinationals and the Pollution-Haven Hypothesis
-
Is Environmental Policy a Secondary Trade Barrier? An Empirical Analysis
By Josh Ederington and Jenny Minier
-
A Simple Model of Trade, Capital Mobility, and the Environment
By Brian R. Copeland and M. Scott Taylor
-
Is Trade Good or Bad for the Environment? Sorting Out the Causality