American Economic Review: Insights
ISSN 2640-205X (Print) | ISSN 2640-2068 (Online)
North-South Displacement Effects of Environmental Regulation: The Case of Battery Recycling
American Economic Review: Insights
vol. 4,
no. 3, September 2022
(pp. 271–88)
Abstract
This study examines the effect of a tightening of the US air quality standard for lead in 2009 on the relocation of battery recycling to Mexico and on infant health in Mexico. In the United States, air-borne lead dropped sharply near affected plants, most of which were battery-recycling plants. Exports of used batteries to Mexico rose markedly. In Mexico, production increased at battery-recycling plants relative to comparable industries, and birth outcomes deteriorated within two miles of those plants relative to areas slightly farther away. The case provides a salient example of a pollution-haven effect between a developed and a developing country.Citation
Tanaka, Shinsuke, Kensuke Teshima, and Eric Verhoogen. 2022. "North-South Displacement Effects of Environmental Regulation: The Case of Battery Recycling." American Economic Review: Insights, 4 (3): 271–88. DOI: 10.1257/aeri.20210201Additional Materials
JEL Classification
- F18 Trade and Environment
- I12 Health Behavior
- J13 Fertility; Family Planning; Child Care; Children; Youth
- O15 Economic Development: Human Resources; Human Development; Income Distribution; Migration
- Q51 Valuation of Environmental Effects
- Q53 Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
- Q58 Environmental Economics: Government Policy