This survey encompasses multiple areas. The theoretical literature on environmental federalism continues to expand in areas such as capital competition and political economy. On the empirical side, emphasis is put on the existence of strategic interaction among states, the effects of President...

Empirical evidence has so far failed to find firm support for the Pollution Haven Hypothesis that lenient environmental regulation attracts investment from polluting firms. We show that a firm may want to relocate to a country with stricter environmental regulation, when the move raises its...