Does environmental dumping lead to delocation ?

Motta, Massimo;Thisse, Jacques-François
(1994) European Economic Review — Vol. 38, n° 3-4, p. 563-576 (1994)

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  • Motta, Massimo
    Author
  • Thisse, Jacques-FrançoisUCLouvain
    Author
Abstract
Environmental dumping is often viewed as an instrument used by some countries in the attempt to attract foreign investments. Stated otherwise, the delocation of firms would be a major outcome of a stiff environmental policy. In this paper, we study the impact of a strict anti-pollution policy pursued by a government on domestic firms' locational decisions, and determine the main variables that interact with such a policy. Some preliminary welfare implications are also provided.
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Motta, M., & Thisse, J.-F. (1994). Does environmental dumping lead to delocation ? European Economic Review, 38(3-4), 563-576. https://hdl.handle.net/2078.5/25632 (Original work published 1994)