"One reason pollution hasn't been exported may be that the dirtier (older) industries have more political power and have resisted tarrif reductions. The authors find, however, that even if one eliminated all tarrifs on manufactured goods pollution would still not be exported.
It's not that this wouldn't be a good idea, it's just that it so happens that poor countries don't have a comparative advantage in producing the goods that require a lot of pollution. Of course, if we tax pollution in the United States at higher levels it will make more sense to export it - an interesting dilemma."
Thursday, February 02, 2006