The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Trade and Environmental Regulations

  • Jenny Minier
Reference work entry


To what extent do environmental regulations affect trade flows? Early cross-sectional studies of the relationship generally found little effect. More recent research that controls for industry heterogeneity, the endogeneity of trade policy, and the type of trade and industry has found sizeable, statistically significant effects of environmental regulations on trade. There is little evidence, however, that production of ‘dirty’ goods has shifted to countries with lax environmental standards.


Environmental regulations Footloose industries Pollution haven Trade policy 

JEL Classifications

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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Jenny Minier
    • 1
  1. 1.