Working Paper: CEPR ID: DP16463
Authors: Shinsuke Tanaka; Kensuke Teshima; Eric A. Verhoogen
Abstract: This study examines the effect of a tightening of the U.S. air-quality standard for lead in 2009 on the relocation of battery recycling to Mexico and on infant health in Mexico. In the U.S., airborne lead dropped sharply near affected plants, most of which were battery-recycling plants. Exports of used batteries to Mexico rose markedly. In Mexico, production increased at battery-recycling plants, relative to comparable industries, and birth outcomes deteriorated within two miles of those plants, relative to areas slightly farther away. The case provides a salient example of a pollution-haven effect between a developed and a developing country.
Keywords: pollution haven hypothesis; environmental regulation; infant health
JEL Codes: F18; Q56; O15
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Tightening of the US air quality standard for lead in 2009 (Q52) | Increase in exports of used lead-acid batteries (ULAB) from the US to Mexico (L99) |
| Tightening of the US air quality standard for lead in 2009 (Q52) | Growth of value-added and output in Mexican battery recycling plants (L99) |
| Relocation of battery recycling activities to Mexico (L99) | Increase in incidence of low birth weight near Mexican battery recycling plants (J89) |
| Tightening of the US air quality standard for lead in 2009 (Q52) | Negative health spillovers among disadvantaged populations in Mexico (I14) |
| Tightening of the US air quality standard for lead in 2009 (Q52) | Reduction in ambient lead concentrations near affected plants (Q52) |