Tanaka, S., Teshima, K. and Verhoogen, E.
North-South displacement effects of environmental regulation: The case of battery recycling
- The American Economic Review: Insights
- 4(3), Sep, 2022: p.271-288
This study examines the effect of a tightening of the US air quality standard for lead in 2009 on the relocation of battery recycling to Mexico and on infant health in Mexico. In the United States, air-borne 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. – Reproduced