| By: |
Sahar Amidi (Université d'Orléans);
Rezgar Feizi (University of Luxembourg) |
| Abstract: |
This paper investigates how various factors affect pollution levels in
Europe’s manufacturing industry. The paper explores how productivity,
expenditure share, trade cost, and environmental regulations affect pollution
levels in Europe’s manufacturing industry. The World Input-Output Database
provides data on global and local pollution for each industrial sector solely
for the period ranging from 1995 to 2009. We use a general equilibrium model
and quantitative trade model that considers pollution as a byproduct of
production. The study aims to examine the effectiveness of regulations and
control for the primary causes of environmental pollution (the main causes).
Our empirical results reveal that air pollution emissions from EU
manufacturing decreased by 33.21 percent despite an 85.44 percent increase in
real manufacturing output. This outcome could provide evidence for the role of
reducing the pollution contamination of manufacturing. The study finds that
most of the decrease in emissions can be ascribed to changes in environmental
regulations, rather than changes in expenditure share, trade cost, and
productivity. Increasing environmental regulations by 20 percent can eliminate
emissions intensity. After increasing environmental regulations by 20%, the
emission of global pollutants such as methane decreased by 17.27% in 2009. |
| Keywords: |
Environmental account and accounting, environmental taxes, general equilibrium model, productivity, quantitative model, technological innovation, trade cost |
| JEL: |
Q |
| Date: |
2024 |
| URL: |
https://d.repec.org/n?u=RePEc:inf:wpaper:2024.10&r= |