Are Exporters More Environmentally Friendly? A Re-Appraisal that Uses China’s Micro-Data

54 Pages Posted: 7 May 2019

See all articles by Jiansuo Pei

Jiansuo Pei

Renmin University of China - School of Applied Economics

Bodo Sturm

Leipzig University of Applied Sciences - HTWK Leipzig

Anqi Yu

University of International Business and Economics (UIBE)

Date Written: 2019

Abstract

Is a firm’s ability to export an important determinant of environmental performance? To answer this question, we construct a unique micro dataset that merged two rich firm-level datasets for China for 2007. When combining this new dataset with well-received empirical specifications, we found that both export status and export intensity are associated with lower sulfur dioxide (SO2) emissions intensity. In addition to the traditional OLS estimation, we verified this association by using the propensity score matching method. Our findings show that the baseline result still holds. In short, exporters are more environmentally friendly than non-exporters, which is in line with previous evidence reported for developed economies. We further discuss mechanisms that explain the observed pattern and show that exporters realize higher abatement efforts compared to non-exporters. This study complements the literature in terms of providing China’s micro evidence on SO2 abatement efforts. It also serves as a first step toward a better understanding of the impact of trade on the environment, especially in developing countries.

Keywords: exporters and the environment; firm heterogeneity; SO2 emissions; abatement

JEL Classification: F18; Q53; Q56

Suggested Citation

Pei, Jiansuo and Sturm, Bodo and Yu, Anqi, Are Exporters More Environmentally Friendly? A Re-Appraisal that Uses China’s Micro-Data (2019). ZEW - Centre for European Economic Research Discussion Paper No. 19-014, Available at SSRN: https://ssrn.com/abstract=3383383 or http://dx.doi.org/10.2139/ssrn.3383383

Jiansuo Pei

Renmin University of China - School of Applied Economics ( email )

59 Zhongguancun Street
Haidian District
Beijing, +861082500208 100872
China

HOME PAGE: http://ae.ruc.edu.cn/szdw/qzjs/ayjspx/gmjjglx/pjs/index.htm

Bodo Sturm (Contact Author)

Leipzig University of Applied Sciences - HTWK Leipzig ( email )

Leipzig
Germany

Anqi Yu

University of International Business and Economics (UIBE) ( email )

10, Huixin Dongjie
Changyang District
Beijing, Beijing 100029
China

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