Why are firms that export cleaner? International trade, abatement and environmental emissions

• Published in: Journal of environmental economics and management Vol. 91; pp. 166 - 183
• Main Authors: Forslid, Rikard, Okubo, Toshihiro, Ulltveit-Moe, Karen Helene
• Format: Journal Article
• Language: English
• Published: Elsevier Inc 01.09.2018; Elsevier B.V; Academic Press
• Subjects: Abatement; Air quality management; Analysis; Environmental aspects; Environmental emissions; Exports; Heterogeneous firms; International trade; International trade; Q56; Heterogeneous firms; F12; F14; Abatement; F18; Environmental emissions

This paper proposes a detailed mechanism for why exporting firms may have a lower emission intensity when emissions are subject to an environmental tax. This mechanism of our model is supported by Swedish firm-level data. Our mechanism runs through firms' endogenous investments in abatement. Fi...