Date of this Version
Journal of Development Economics
This paper presents evidence on whether multinationals are flocking to developing country “pollution havens”. Although we find some evidence that foreign investors locate in sectors with high levels of air pollution, the evidence is weak at best. We then examine whether foreign firms pollute less than their peers. We find that foreign plants are significantly more energy efficient and use cleaner types of energy. We conclude with an analysis of U.S. outbound investment. Although the pattern of U.S. foreign investment is skewed towards industries with high costs of pollution abatement, the results are not robust across specifications.
© 2003. This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/
foreign investment, pollution haven, environment, multinational
Eskeland, G. S., & Harrison, A. E. (2003). Moving to Greener Pastures? Multinationals and the Pollution Haven Hypothesis. Journal of Development Economics, 70 (1), 1-23. http://dx.doi.org/10.1016/S0304-3878(02)00084-6
Date Posted: 27 November 2017
This document has been peer reviewed.