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The Impacts of Environmental Regulations on Competitiveness

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Dechezleprêtre, Antoine, Sato, Misato·2017·Review of Environmental Economics and Policy

Abstract

This article reviews the empirical literature on the impacts of environmental regulations on firms’ competitiveness as measured by trade, industry location, employment, productivity, and innovation. The evidence shows that environmental regulations can lead to statistically significant adverse effects on trade, employment, plant location, and productivity in the short run, in particular in a well-identified subset of pollution- and energy-intensive sectors, but that these impacts are small relative to general trends in production. At the same time, there is evidence that environmental regulations induce innovation in clean technologies, but the resulting benefits do not appear to be large enough to outweigh the costs of regulations for the regulated entities. As measures to address competitiveness impacts are increasingly incorporated into the design of environmental regulations, future research will be needed to assess the validity and effectiveness of such measures and to ensure they are compatible with the environmental objectives of the policies.

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Metadata

Authors
Dechezleprêtre, A., & Sato, M.
Venue
Review of Environmental Economics and Policy
Published
2017-07-01
Volume
11
Issue
2
Pages
183-206
ISSN
  • 1750-6816 (ISSN-L)
  • 1750-6824
OpenAlex
W2185032033
Cited by
995
References
13
FWCI
92.29
Type
journal article
Language
en
Open access
hybrid

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CoChat. (2026). Citation check: The Impacts of Environmental Regulations on Competitiveness. https://app.cochat.ai/papers/10.1093/reep/rex013
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Dechezleprêtre, A., & Sato, M. (2017). The Impacts of Environmental Regulations on Competitiveness. Review of Environmental Economics and Policy. https://doi.org/10.1093/reep/rex013

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