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Polluting firms' location choices and pollution havens in an R&D-based growth model for an international emissions trading market
The Journal of International Trade & Economic Development ( IF 2.2 ) Pub Date : 2021-02-18 , DOI: 10.1080/09638199.2021.1889644
Yoshihiro Hamaguchi 1
Affiliation  

We investigate the effect of grandfathered permit allocation and abatement productivity for carbon emissions on growth rate, firms' location choices, foreign direct investment, and total pollution in an agglomeration model with innovation. We consider grandfathered permit allocation as potential rent. We find a distribution effect wherein increasing (decreasing) permit price raises (reduces) firms' rent, thereby stimulating (inhibiting) R&D and the growth rate. Decreasing the permit level (improving abatement productivity) prompts firms to locate from the South (North) to the North (South) in the long run via this effect. Thus, our results imply that improving abatement productivity leads to support of the pollution haven hypothesis.



中文翻译:

国际排放交易市场基于研发的增长模型中的污染企业的地点选择和污染天堂

在创新的集聚模型中,我们研究了祖先许可分配和碳排放减排生产率对增长率,企业的地点选择,外国直接投资和总污染的影响。我们将祖父许可分配视为潜在租金。我们发现一种分配效应,其中许可价格的增加(减少)提高(减少)企业的租金,从而刺激(抑制)RD和增长率。从长远来看,降低许可水平(提高减排效率)会促使企业从南(北)到北(南)选址。因此,我们的结果表明,提高减排效率可以支持污染天堂假说。

更新日期:2021-02-18
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