Kiel Working Papers, Kiel Institute for World Economics
No 1423:
Exporting and the Environment: A New Look with Micro-Data
Sourafel Girma, Aoife Hanley and Felix Tintelnot
Abstract: Previous aggregate studies ignore additional environmental
improvements caused by intra industry reallocations to high productivity/
low pollution firms. They also fail to consider potential differences in
abatement efforts by exporting status. Our estimation based on UK firm
level data from 1998 to 2002 shows that exporters are 7.5 percent more
likely to denote their innovation as having a ‘high’ or ‘very high’
environmental effect. Our findings also show that exporters are 17.5
percent more likely, all things equal, to report that their firm’s
innovation cuts the cost of energy/ materials. Our results agree with our
environment trade model which predicts that exporters amortize the fixed
cost of environmental abatement over their wider output base
Keywords: Exporting, environment, innovation, heterogeneity; (follow links to similar papers)
JEL-Codes: O31,; Q55,; Q56; (follow links to similar papers)
36 pages, June 2008
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