Template-Type: ReDIF-Paper 1.0
Series: Tinbergen Institute Discussion Papers
Creation-Date: 2022-06-15
Revision-Date: 2023-03-21
Number: 22-039/VI
Author-Name: Konstantin Sommer
Author-Workplace-Name: University of Amsterdam
Author-Name: Henri L.F. de Groot
Author-Workplace-Name: Vrije Universiteit Amsterdam
Author-Name: Franc Klaassen
Author-Workplace-Name: University of Amsterdam
Title: The effects of market integration on pollution: an analysis of EU enlargements
Abstract: We study the effects of market integration on manufacturing emission intensities
of CO2, SOx, and NOx. For this, we analyze the 2004 and 2007 EU enlargements
in a sectoral panel with data on almost all EU member states from 1995 to 2015.
We pay close attention to relevant channels of trade, regulation, and efficiency.
Overall, the enlargements have resulted in a reduction of emission intensities in
new member states: new regulations, which accession countries needed to adopt,
have lowered pollution intensities strongly; induced improvements in productivity
have further reduced them; and trade integration into the EU has had insignificant
effects on emission intensities. We also do not find evidence of within-EU pollution
haven effects and thus of leakage from old to new member states. For old members, trade integration, if anything, increased emission intensities, but productivity
improvements have also contributed to cleaner manufacturing sectors here.

Classification-JEL: F15, F64, Q56
Keywords: Market Integration, EU Enlargement, Carbon Leakage, Pollution Havens, Emission Intensity
File-URL: https://papers.tinbergen.nl/22039.pdf
File-Format: application/pdf
File-Size: 1.098.910 bytes
Handle: RePEc:tin:wpaper:20220039