Navigationsweiche Anfang

Navigationsweiche Ende

Select language

Contact

Europäisches Institut für Internationale Wirtschaftsbeziehungen

Rainer-Gruenter-Str. 21
D-42119 Wuppertal

Tel: +49-(0)202-439 1371
Fax: +49-(0)202-439 1377
Mobil: +49-(0)174-702 0924

welfens(at)eiiw.uni-wuppertal.de

News

  • "Frauen-Erwerbschancen und -Arbeitslosigkeitsprobleme weiblicher Flüchtlinge in Wuppertal: ökonomische und statistische Analyse"
    Innovative Studie wurde erstellt für das Jobcenter Wuppertal [more]
  • Global Climate Change Policy - forthcoming publication with Palgrave Macmillan
    The forthcoming new book from Paul Welfens - "Global Climate Change Policy - Analysis, Economic... [more]
  • Corona vaccination regulation: Vaccination schedule in Germany contradictory and flawed
    *Germany’s federal government once-in-a-century decision on vaccinations is partly contradictory. ... [more]
  • PM: Corona-Impfplanung Deutschland: Viel zu langsam und unsinnig
    * Unmögliche Impfplanung der Politik * Spätzulassung Impfstoff von Biontech in EU ist unakzeptabel *... [more]
  • Invitation Zoom Digital Seminar: The International Economics of the Corona Shock
    The International Economics of the Corona Shock Zoom Digital Seminar Date: 8 July 2020 Time:... [more]
go to Archive ->

Bahlmann, J.; Welfens, P.J.J.: Environmental Policy Stringency and Foreign Direct Investment: New Insights from a Gravity Model Approach

Bahlmann, J.; Welfens, P.J.J.: Environmental Policy Stringency and Foreign Direct Investment: New Insights from a Gravity Model Approach

JEL classification: F21, Q43, Q50, Q58, C23

Key words: FDI, Pollution Haven Countries, OECD, Gravity Modelling, Environmental Policy

 

Summary: 

There is a long debate about potential pollution haven effects existing in the global North and South in the context of rising environmental stringency. This contribution takes a fresh look at intra-OECD foreign direct investment and employs a modern FDI gravity modelling approach to shed more light on these issues. There is clear evidence in favor of the pollution haven hypothesis – countries with weaker environmental policy and regulation are able to attract relatively high FDI inflows so that new challenges for environmental policy and international cooperation in environmental policy have to be considered. As regards environmental policy, more political cooperation between the OECD countries seems to be required in order to prevent or mitigate “quasi-carbon leakage” effects from undermining the effectiveness of environmental and climate policy. The evidence obtained from this analysis of OECD countries suggests the benefit of extending this research in future to other country groups, to include countries in Asia or Latin America and Africa. 

  

 

 

Download the paper