OECD Trade and Environment Working Papers

ISSN :
1816-6881 (online)
DOI :
10.1787/18166881
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Selected studies addressing the policy interface between trade and environment prepared for use within the OECD. They address such issues a liberalizing trade in goods that affect the environment, and trade in environmental goods and services.
 

Measuring Environmental Regulatory Stringency You or your institution have access to this content

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Author(s):
Claire Brunel1, Arik Levinson1
Author Affiliations
  • 1: Georgetown University, United States

Publication Date
22 Aug 2013
Bibliographic information
No:
2013/05
Pages
42
DOI
10.1787/5k41t69f6f6d-en

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Researchers have long been interested in whether environmental regulations discourage investment, reduce labour demand, or alter patterns of international trade. But estimating those consequences of regulations requires devising a means of measuring their stringency empirically. While creating such a measure is often portrayed as a data-collection problem, we identify four fundamental conceptual obstacles, which we label multidimensionality, simultaneity, industrial composition, and capital vintage. We then describe the long history of attempts to measure environmental regulatory stringency, and assess their relative success in light of those obstacles. Finally, we propose a new measure of stringency that would be based on emissions data and could be constructed separately for different pollutants.
Keywords:
environmental subsidies, trade and environment, environmental regulations
JEL Classification:
  • C26: Mathematical and Quantitative Methods / Single Equation Models; Single Variables / Instrumental Variables (IV) Estimation
  • C43: Mathematical and Quantitative Methods / Econometric and Statistical Methods: Special Topics / Index Numbers and Aggregation
  • C83: Mathematical and Quantitative Methods / Data Collection and Data Estimation Methodology; Computer Programs / Survey Methods; Sampling Methods
  • D78: Microeconomics / Analysis of Collective Decision-Making / Positive Analysis of Policy-Making and Implementation
  • F18: International Economics / Trade / Trade and Environment
  • F64: International Economics / Globalization / Environment
  • L51: Industrial Organization / Regulation and Industrial Policy / Economics of Regulation
  • Q52: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Pollution Control Adoption Costs; Distributional Effects; Employment Effects
  • Q53: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
  • Q58: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Government Policy