Is National Environmental Legislation Affecting Emissions?

Mardi | 2018-09-18
Salle des thèses 16h – 17h20


In this paper, we built an environmental regulation index for a panel of countries over the period 1996-2008. The index, based on regulatory-intensity variables specific to a number of environmental topics, is used to investigate the effect of environmental laws on pollution. Three pollutants are considered, namely, PM 2.5, SO2 and NO2. A panel data model is estimated taking into account the determinants of environmental quality and the simultaneity between environmental regulation and emissions. The identification strategy consists on using other type of laws as an instrument for environmental regulation. The main results indicate that the intensity of environmental regulation has a decreasing effect on local pollution. This effect varies by pollutant and it is also heterogeneous across countries.