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Exporting and environmental performance: Where you export matters

Author

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  • Juan S. Blyde
  • Mayra A. Ramirez
Abstract
Empirical analyses that rely on micro-level panel data have found that exporters are generally less pollutant than non-exporters. While alternative explanations have been proposed, firm-level data has not been used to examine the role of destination markets behind the relationship between exports and pollution. In this paper, we argue that because consumers in high-income countries have higher valuations for clean environments than consumers in developing countries, exporters targeting high-income countries are more likely to improve their environmental outcomes than exporters targeting destinations where valuations for the environment are not high. Using a panel of firm-level data from Chile we find support to this hypothesis. A 10 percentage point increase in the share of exports to high-income countries is associated with a reduction in CO2 pollution intensity of about 16%. The results have important implications for firms in developing countries aiming to target high-income markets.

Suggested Citation

  • Juan S. Blyde & Mayra A. Ramirez, 2022. "Exporting and environmental performance: Where you export matters," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 31(5), pages 672-691, July.
    • Handle: RePEc:taf:jitecd:v:31:y:2022:i:5:p:672-691
    DOI: 10.1080/09638199.2021.2003424
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    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F18 - International Economics - - Trade - - - Trade and Environment
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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