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Multinational companies headquartered in countries with tougher environmental policies tend to locate their polluting factories in countries with more lax regulations, a new study finds.
While countries may hope their regulations will reduce emissions of carbon dioxide and other greenhouse gases, these results show that these policies can lead to carbon leakage to other nations, said Itzhak Ben-David, co-author of the study and professor of finance at The Ohio State University s Fisher College of Business. Firms decide strategically where to locate their production based on existing environmental policies, with the result being that they pollute more in countries with lenient regulations, Ben David said.
Strict environmental laws ‘push’ firms to pollute elsewhere
Study highlights need for global cooperation on policies
Jeff Grabmeier
Multinational companies headquartered in countries with tougher environmental policies tend to locate their polluting factories in countries with more lax regulations, a new study finds.
While countries may hope their regulations will reduce emissions of carbon dioxide and other greenhouse gases, these results show that these policies can lead to “carbon leakage” to other nations, said Itzhak Ben-David, co-author of the study and professor of finance at The Ohio State University’s Fisher College of Business.
“Firms decide strategically where to locate their production based on existing environmental policies, with the result being that they pollute more in countries with lenient regulations,” Ben David said.
Environmental News Network - Strict Environmental Laws Push Firms to Pollute Elsewhere enn.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from enn.com Daily Mail and Mail on Sunday newspapers.
A new study found just how many women are sacrificing their own careers to help with childcare. Author: Clay Gordon Updated: 5:10 PM EST February 3, 2021
A disproportionate number of women are leaving the workforce compared to men, according to a study released by the Center of American Progress. The organization says in September, roughly 865,000 women, compared to 216,000 thousand men, dropped out.
Ohio State University researchers participated in a fast-track study for the U.S. Academies of Science, Engineering, and Medicine, which looked at the impact of COVID-19 in the careers of women.
“It was heartbreaking to see women say they were considering quitting,” said Tracy Dumas, an associate professor of Management of Human Resources, at Ohio State University’s Fisher College of Business. “Even if they were staying with their job, they were giving up long term goals.”