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Are exporters more environmentally friendly than non-exporters? Theory and evidence
Economics Working Papers (2002–2016)
  • Jingbo Cui, Iowa State University
  • Harvey E. Lapan, Iowa State University
  • GianCarlo Moschini, Iowa State University
Document Type
Working Paper
Publication Date
Working Paper Number
WP #12022, October 2012
This paper studies the firm-level relationship between decision to export and environmental performance. To guide the empirical work, we introduce environmental pollution and technology choice into a trade model with heterogeneous firms. The model predicts that a productive firm is more likely to adopt emission-saving technology and to export. Using facility-level criteria air emission data in the U.S. manufacturing industry, for a variety of pollutants, empirical tests are supportive of our two primary theoretical predictions. First, facility productivity is negatively correlated with emission intensity, measured by emissions per value of sales. Second, conditional on the estimated facility productivity and the facility's exposure to environmental regulation, exporters have lower emission per value of sales than non-exporters within the same industry.
File Format
49 pages
File Function
This version: October 4, 2012
Citation Information
Jingbo Cui, Harvey E. Lapan and GianCarlo Moschini. "Are exporters more environmentally friendly than non-exporters? Theory and evidence" (2012)
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