Selected Work in Progress

“Trade Induced Emissions Leakage and Unilateral Environmental Regulations”

Abstract: This paper examines whether unilateral environmental regulations lead to emissions leakage — emissions-intensive activities shifted offshore to countries with less stringent regulations. In late 2005, the Chinese central government implemented a sulfur dioxide (SO2) emissions reduction plan with a focus on Two Control Zone (TCZ) cities. Using a Difference-in-Difference framework, I find that, relative to non-TCZ cities, the number of non-importer entrants decreases in TCZ cities, and firms in TCZ cities import inputs from “dirtier” countries. These findings indicate that facing domestic environmental regulations, firms resort to foreign imports to circumvent the regulations. They also micro-found trade models widely used in the environment-trade literature. (Model in progress.)

“Response to Emissions Quota: FDI or Industry Upgrading?”

“Bargaining and Entry in Global Sourcing”

“Minimum Wage and Supply Chain Disruptions”