Working Paper: NBER ID: w29146
Authors: Shinsuke Tanaka; Kensuke Teshima; Eric 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: Environmental regulation; Pollution-haven hypothesis; Battery recycling; Health outcomes; Lead exposure
JEL Codes: F18; I14; I15; O15; Q56
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Tightening of US air-quality standards for lead (Q52) | Reduction in ambient lead concentrations around US battery-recycling plants (L99) |
| Tightening of US air-quality standards for lead (Q52) | Increase in exports of used lead-acid batteries to Mexico (L99) |
| Increase in exports of used lead-acid batteries to Mexico (L99) | Increase in value-added and output in Mexican battery-recycling plants (L99) |
| Increase in value-added and output in Mexican battery-recycling plants (L99) | Increase in incidence of low birth weight for infants born to mothers near these plants (J89) |
| Tightening of US air-quality standards for lead (Q52) | Increase in incidence of low birth weight for infants born to mothers near Mexican battery-recycling plants (J89) |
| Tightening of US air-quality standards for lead (Q52) | Adverse health spillovers in surrounding communities of Mexican battery-recycling plants (F64) |