1. Exporting and environmental performance: Where you export matters.
- Author
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Blyde, Juan S. and Ramirez, Mayra A.
- Subjects
- *
HIGH-income countries , *PANEL analysis , *TARGET marketing , *PLACE marketing , *EXPORTS , *KUZNETS curve ,DEVELOPING countries - 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. [ABSTRACT FROM AUTHOR]
- Published
- 2022
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