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Environmental policy and the inward investment position of US “dirty” industries

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Intereconomics

Abstract

Do high pollution abatement costs have a disadvantageous effect on foreign direct investment in countries with a strict environmental policy? While it would seem to make sense to believe that they do, hard evidence based on trade data is hard to find. The following article tests the hypothesis for the USA and comes to some surprising conclusions.

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The study on which this paper is based was funded by the OSTC (Belgian Federal Office for Scientific, Technological and Current Affairs) Programme on Sustainable Development. The author wishes to thank Tom Verbeke (University of Gent, NFWO) for his helpful remarks.

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Albrecht, J. Environmental policy and the inward investment position of US “dirty” industries. Intereconomics 33, 186–194 (1998). https://doi.org/10.1007/BF02929512

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