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The Review of Economics and Statistics Vol. 106 No. 4 2024

Exporting, Abatement, and Firm-Level Emissions: Evidence from China’s Accession to the WTO

Joel Rodrigue1; Dan Sheng2; Yong Tan3

1 Vanderbilt · 2 Nankai · 3 NUFE

Abstract

This paper studies the joint impact of exporting and abatement on the environmental performance of Chinese manufacturers. For two common air pollutants (SO2 and industrial dust) we document that (a) exporters are significantly less emissions-intensive relative to their nonexporting counterparts and (b) this difference cannot be explained by differential rates of abatement alone. Employing variation in trade and environmental conditions across time and space, we quantify the impact of endogenous export and abatement decisions on firm-level emissions. We find that exporting reduces emissions by at least 36% across pollutants. We explore underlying determinants of export-driven reductions in emissions intensity.

DOI
10.1162/rest_a_01194
Volume
106
Issue
4
Pages
1064-1082
Language
en
Sources
bibtex:phds-export.bib openalex crossref

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