nep-res New Economics Papers
on Resource Economics
Issue of 2006‒03‒25
two papers chosen by
Maximo Rossi
Universidad de la Republica

  1. Pollution Haven Hypothesis or Factor Endowment Hypothesis: Theory and Empirical Examination for the US and China By Umed Temurshoev
  2. Habit in Pollution. A Challenge for Intergenerational Equity By Ingmar, SCHUMACHER; Benteng, ZOU

  1. By: Umed Temurshoev
    Abstract: This paper examines how free international trade affects the environment in the developed and less developed worlds. Using input-output techniques, tests of the pollution haven hypothesis (PHH) and the factor endowment hypothesis (FEH) for the US and China were empirically carried out. We found that China gains and the US lose in terms of CO2, SO2 and NOx emissions from increased trade, and the US is not exporting capital intensive goods. Thus both the PHH and the FEH are rejected, which implies that explaining the trade of pollutants remains an unresolved puzzle.
    Keywords: International trade, Environment, Pollution haven, Factor endowment, Inputoutput analysis.
    JEL: F18 Q32 D57
    Date: 2006–03
  2. By: Ingmar, SCHUMACHER (UNIVERSITE CATHOLIQUE DE LOUVAIN, Center for Operations Research and Econometrics (CORE)); Benteng, ZOU (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES))
    Abstract: In this article we extend the recent literature on overlapping generations and pollution by allowing each generation’s utility to depend on past levels of pollution. To conform with the literature on habit in consumption we call this extension habit in pollution. Habit in pollution can visualize itself as either a concern for the flow of pollution only, or for the stock, or anything in between. We show that habit in pollution has not only significant consequences for the level of pollution and capital, but also for the evolution of utility over time. We observe that habit in pollution can lead to violations of two standard criteria of sustainability, which suggests that habit in pollution can be another source of intergenerational inequity.
    JEL: Q20 I31
    Date: 2006–12–31

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