The pollution haven effect reflects the idea that stricter environmental policies foster the relocation of polluting activities and imports of pollution-intensive products. This paper develops a new approach for testing this effect for imported intermediate materials. It adds to the existing...

The ongoing internationalization of production has altered the economic landscape. Many products used to be produced locally using inputs drawn largely from the domestic economy, which implied that most of the value chains or production processes used to be located in the country where a firm...