Jaime de Melo, Nicole Mathys, Jean-Marie Grether, 28 November 2009

The “pollution haven” view asserts that globalisation draws industries to countries with lax environmental regulation. This column presents evidence that that the major polluting industries are not very footloose and that changes in emissions through the relocation of activities are relatively small. The growth of trade itself, however, is likely to contribute to growing emissions associated with transport.

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