Environmental regulations fail to drive pollution-intensive industries to countries with weak laws.
The article examines how international trade and environmental regulations affect pollution emissions worldwide. The researchers found that environmental regulations do not necessarily cause pollution-intensive industries to move to countries with weaker regulations. Instead, factors like productivity and trade costs play a bigger role in determining where industries locate. They also discovered that environmental policies in response to trade liberalization are limited in their effectiveness. Overall, the study shows that while environmental regulations are important, they are not the main factor influencing international trade and pollution emissions.