Korea Trade Review (무역학회지)

Korea Trade Research Association (한국무역학회)
권호 표지
DOI QR코드

DOI QR Code

A study on the effect of changes in the level of environmental regulation of the importing country on export performance

수입국 환경제도수준 변화가 수출에 미치는 영향 연구

  • Yun-Seop Hwang (Department of International Trade, Kyung Hee University) ;
  • Cheon Yu (Department of International Trade, Mokpo National University)
  • 황윤섭 (경희대학교 정경대학 무역학과 ) ;
  • 유천 (목포대학교 무역학과 )
  • Received : 2020.07.26
  • Accepted : 2020.08.28
  • Published : 2020.08.31
Download PDF
⟨ Previous Next ⟩

Abstract

Under New Climate Regime, countries are trying to enhance environmental regulations to meet international standards. This study is designed to examine the relationship between the relative level of environmental regulation of the importing countries and the export performance at the industrial level. Panel data from 2009 to 2018 was established for 12 top export industries and empirical analysis was conducted. For the analysis method, panel OLS, Hausman-Taylor, and panel GLS were used based on the results of the Hausman verification. The dependent variable is the export performance of each industry. As the independent variables, the relative level of environmental regulation, GDP per capita of the importing country, exchange rate, FTA agreement, and physical distance from the importing country were used. Results show that the relative level of environmental regulation has a negative effect on export performance of semiconductors, displays, special machines, general machines, electric appliances, and home appliances. On the other hand, there are no relationship between the relative level of environmental regulation of the importing country and export performance of automobile, petroleum refining, petrochemical, shipbuilding, and communication equipment industries.

Keywords

Acknowledgement

This work was supported by the Korea Sanhak Foundation(KSF) in 2019.

References

  1. Andersson, F. N. (2018), "International Trade and Carbon Emissions: The Role of Chinese Institutional and Policy Reforms", Journal of Environmental Management, 205, 29-39. https://doi.org/10.1016/j.jenvman.2017.09.052
  2. Bemelmans-Videc, M-L., R. C. Rist and E. Vedung (2010), Carrots, Sticks, and Sermons: Policy Instruments and Their Evaluation (5th ed.), New Brunswick, NJ: Transaction Publishers, 21-58.
  3. Botta, E. and T. Kozluk (2014), Measuring Environmental Policy Stringency in OECD Countries: A Composite Index Approach (OECD Economics Department Working Papers, No. 1177), Paris: Organisation for Economic Cooperation and Development (OECD) Economics Department, 1-47.
  4. Brunel, C. and A. Levinson (2016), "Measuring the Stringency of Environmental Regulations", Review of Environmental Economics and Policy, 10(1), 47-67. https://doi.org/10.1093/reep/rev019
  5. Brunnermeier, S. B. and M. A. Cohen (2003), "Determinants of Environmental Innovation in US Manufacturing Industries", Journal of Environmental Economics and Management, 45(2), 278-293. https://doi.org/10.1016/S0095-0696(02)00058-X
  6. Callan, S. J. and J. M. Thomas (2013), Environmental Economics and Management: Theory, Policy, and Applications (6th ed.), Mason, OH: Cengage Learning.
  7. Chiarvesio, M., V. D. Marchi and E. D. Maria (2015), "Environmental Innovations and Internationalization: Theory and Practices", Business Strategy and the Environment, 24(8), 790-801. https://doi.org/10.1002/bse.1846
  8. Cole, M. A. and R. J. Elliott (2005), "FDI and the Capital Intensity of "Dirty" Sectors: a Missing Piece of the Pollution Haven Puzzle", Review of Development Economics, 9(4), 530-548. https://doi.org/10.1111/j.1467-9361.2005.00292.x
  9. Costantini, V. and F. Crespi (2008), "Environmental Regulation and the Export Dynamics of Energy Technologies", Ecological Economics, 66(2-3), 447-460. https://doi.org/10.1016/j.ecolecon.2007.10.008
  10. Dechezlepretre, A., E. Neumayer and R. Perkins (2015), "Environmental Regulation and the Cross-border Diffusion of New Technology: Evidence from Automobile Patents", Research Policy, 44(1), 244-257. https://doi.org/10.1016/j.respol.2014.07.017
  11. Environmental Administration Research Society (2017), Environmental Policy, Seoul: Daeyoung Moonhwasa.
  12. Evenett, S. J. and J. Whalley (2009), "Resist Green Protectionism or Pay the Price at Copenhagen". In R. Baldwin and S. Evenett (Eds.), The Collapse of Global Trade, Murky Protectionism and the Crisis: Recommendations for the G20, London: Centre for Economic Policy Research (CEPR), 93-98.
  13. Fogler, H. R. and F. Nutt (1975), "A Note on Social Responsibility and Stock Valuation", Academy of Management Journal, 18(1), 155-160. https://doi.org/10.2307/255635
  14. Gray, W. B. and R. J. Shadbegian (1995), Pollution Abatement Costs, Regulation, and Plant-level Productivity (NBER Working Paper, No. w4994), Cambridge, MA: National Bureau of Economic Research.
  15. Hatab, A. A., E. Romstad and X. Huo (2010), "Determinants of Egyptian Agricultural Exports: A Gravity Model Approach". Modern Economy, 1(03), 134. https://doi.org/10.4236/me.2010.13015
  16. Hwang, Yun-Seop and Cheon Yu (2015), "A Study on Development of Climate Volatility Indices Using the Climate Extremes for Industrial Application", Korean Corporation Management Review, 62, 161-176.
  17. Hwang, Yun-Seop, Mun-Ho Hwang and Xiaoxu Dong (2015), "The Relationships Among Firm Size, Innovation Type, and Export Performance with Regard to Time Spans", Emerging Markets Finance and Trade, 51(5), 947-962. https://doi.org/10.1080/1540496X.2015.1061386
  18. Iraldo, F., F. Testa., M. Melis and M. Frey (2011), "A Literature Review on the Links between Environmental Regulation and Competitiveness", Environmental Policy and Governance, 21(3), 210-222. https://doi.org/10.1002/eet.568
  19. Jensen, M. B., B. Johnson, E. Lorenz and B. A. Lundvall (2007), "Forms of Knowledge and Modes of Innovation", Research Policy, 36(5), 680-693. https://doi.org/10.1016/j.respol.2007.01.006
  20. Johnstone, N., I. Hascic and D. Popp (2010), "Renewable Energy Policies and Technological Innovation: Evidence Based on Patent Counts", Environmental and Resource Economics, 45(1), 133-155. https://doi.org/10.1007/s10640-009-9309-1
  21. Jung, Joon-Keum (2007), Environmental Policy, Seoul: Daeyoung Moonhwasa.
  22. Kim, Huyn-No, So-Eun Ahn, Jong-Ho Kim, Jeong-Seok Lee, and Yoo-Sun Kim, (2019), Environmental Regulation Forum: Overview and Long-Term Policy Issues (KEI Working Paper, Vol. 2019), Seoul: Korea Environment Institute, 1-157.
  23. Kim, Kwang-Wook (2007), "Research on environmental regulation strength and international competitiveness", 2007 Autumn Conference Paper of The Korean Association of Public Finance, 1-14.
  24. Lanoie, P., M. Patry and R. Lajeunesse (2008), "Environmental Regulation and Productivity: Testing the Porter Hypothesis", Journal of Productivity Analysis, 30(2), 121-128. https://doi.org/10.1007/s11123-008-0108-4
  25. Palmer, K., W. E. Oates and P. R. Portney (1995), "Tightening Environmental Standards: the Benefit-cost or the No-cost Paradigm?" Journal of Economic Perspectives, 9(4), 119-132. https://doi.org/10.1257/jep.9.4.119
  26. Paternoster, R. and S. Simpson (1996), "Sanction Threats and Appeals to Morality: Testing a Rational Choice Model of Corporate Crime", Law and Society Review, 30(3), 549-583. https://doi.org/10.2307/3054128
  27. Perkins, R. and E. Neumayer (2009), "Transnational Linkages and the Spillover of Environment-efficiency into Developing Countries", Global Environmental Change, 19(3), 375-383. https://doi.org/10.1016/j.gloenvcha.2009.05.003
  28. Porter, M. E. and C. van der Linde (1995), "Green and Competitive: Ending the Stalemate". In E. F. M. Wubben (Ed.), The Dynamics of the Eco-efficient Economy: Environmental Regulation and Competitive Advantage, Cheltenham, UK: Edward Elgar, 33-56.
  29. Ren, S., X. Li., B. Yuan., D. Li and X. Chen (2018), "The Effects of Three Types of Environmental Regulation on Eco-efficiency: A Cross-region Analysis in China", Journal of Cleaner Production, 173, 245-255. https://doi.org/10.1016/j.jclepro.2016.08.113
  30. Shahriar, S., L. Qian and S. Kea (2019), "Determinants of Exports in China's Meat Industry: A Gravity Model Analysis", Emerging Markets Finance and Trade, 55(11), 2544-2565. https://doi.org/10.1080/1540496X.2019.1578647
  31. Tsai, K. H. and Y. C. Liao (2017), "Sustainability Strategy and Eco-innovation: A Moderation Model", Business Strategy and the Environment, 26(4), 426-437. https://doi.org/10.1002/bse.1926
  32. UNEP (1997), United Nations Environment Programme, New York
  33. Wagner, M. (2007), "On the Relationship between Environmental Management, Environmental Innovation and Patenting: Evidence from German Manufacturing Firms", Research Policy, 36(10), 1587-1602. https://doi.org/10.1016/j.respol.2007.08.004
  34. Whalley, J. (2009), "Leveling the Carbon Playing Field: International Competition and US Climate Policy Design by Houser Trevor, Bradley Rob, Childs Britt, Werksman Jacob and Heilmayr Robert Washington, DC: Peterson Institute for International Economics, 2008", World Trade Review, 8(4), 611-613. https://doi.org/10.1017/S1474745609990097
  35. Winsemius, P. and U. Guntram (1992), "Responding to the Environmental Challenge", Business Horizons, 35(2), 12-21. https://doi.org/10.1016/S0007-6813(05)80188-0
  36. Zhao, X., H. Yin and Y. Zhao (2015). "Impact of Environmental Regulations on the Efficiency and CO2 Emissions of Power Plants in China", Applied Energy, 149, 238-247. https://doi.org/10.1016/j.apenergy.2015.03.112
  37. Zhu, Q., J. Sarkis and K. H. Lai (2007), "Green supply chain management: pressures, practices and performance within the Chinese automobile industry", Journal of cleaner production, 15(11-12), 1041-1052. https://doi.org/10.1016/j.jclepro.2006.05.021