Environmental Regulation in the New Global Economy
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Environmental Regulation in the New Global Economy

The Impact on Industry and Competitiveness

Rhys Jenkins, Jonathan Barton, Anthony Bartzokas, Jan Hesselberg and Hege Merete Knutsen

This book attempts to answer these questions using case studies of three pollution-intensive industries: iron and steel, leather tanning, and fertilizers. Based on in-depth interviews with managers and regulators in Western and Eastern Europe, Asia, Africa and Latin America, the book illustrates the variety of responses to the conflicting pressures of globalization and environmental protection at corporate and industry levels.
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Chapter 12: Environmental Regulation, Trade and Investment in a Global Economy

Rhys Jenkins, Jonathan Barton, Anthony Bartzokas, Jan Hesselberg and Hege Merete Knutsen


15435_EnvironReg/Chap12 30/5/02 2:53 pm Page 3 12. Environmental regulation, trade and investment in a global economy The previous three parts of this book have provided case studies which illustrate in some detail the changes in competitiveness and industrial location that have taken place in iron and steel, leather tanning and the fertilizer industry. In this final chapter an attempt will be made to locate these findings within the broader context of the debates on the impact of environmental regulation which were raised in Part I of the book. TRADE, INVESTMENT AND INDUSTRIAL POLLUTION A number of different hypotheses have been advanced concerning the relationship between environmental regulation, competitiveness and industrial location and it is necessary to distinguish between them and to clarify some of the terminology used. Previous studies have not always been consistent in the way in which they refer to the phenomena that are set out here. In general terms there are two sets of linkages: those running from environmental regulation to trade, investment and competitiveness, and those which run in the opposite direction, from globalization to environmental regulation. These were referred to in Chapter 1 as competitiveness issues and governance issues respectively. This book has been primarily concerned with the first of these, although it has touched on the second. Within each area, there are a number of specific hypotheses that have been put forward. There are several ways in which it has been suggested that environmental regulation may affect competitiveness and industrial location. First...

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