Congratulations to Professor Jevan Cherniwchan! His paper titled “Do Environmental Regulations Affect the Decision to Export?” has been accepted for publication in the American Economic Journal: Economic Policy – a top-tier journal for publishing research on the role of economic policy in economic outcomes.
This paper investigates how a common form of environmental regulation — air quality standards — affect exporters. We develop a simple theoretical model to show how the design of these standards causes: (i) some firms to stop exporting, and (ii) a reduction in the export volumes of affected continuing exporters. We exploit quasi-experimental variation resulting from the design of Canadian air quality standards to test these predictions empirically. Our estimates confirm our model’s predictions: we find that for the most affected manufacturers, regulation reduced export volumes by 32% and increased the likelihood plants stop exporting by 5 percentage points.