Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/290080 
Year of Publication: 
2022
Series/Report no.: 
IDB Working Paper Series No. IDB-WP-01308
Publisher: 
Inter-American Development Bank (IDB), Washington, DC
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.
Subjects: 
exports
environment
climate change
emissions
JEL: 
F14
F18
Q56
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Working Paper

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