This paper studies how environmental regulation plays a role in shaping the pattern of outward foreign direct investment, and thereby assesses the pollution haven hypothesis. Empirical evidence for the pollution haven hypothesis has been inconsistent in the literature, possibly due to data...

I consider an imperfectly competitive industry where firms signal the environmental attribute of their production technology through prices to environmentally conscious consumers that are not informed about the environmental damage caused by firms but are willing to pay more for "cleaner"...

We examine the effect of more stringent environmental regulation on the dynamic structure of a deterministic competitive industry with endogenous entry and exit where firms invest in reduction of their future compliance cost. The level of regulation is exogenously fixed and constant over time....

The concepts of an environmental Gini coefficient along with a measure of ''pollution elasticity'' are introduced and used to analyze the distribution of pollution across U.S. states from 1988 -- 1996. The special properties of the Gini coefficient allow one to decompose overall pollution...

After proposing a simple theoretical framework to illustrate the importance of third-country effects in empirical studies of the Pollution Haven Hypothesis, we test the model using state-level panel data on inbound US FDI and relative abatement costs. Our analysis reveals that while own state...