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1、ECOLOGICALECONOMICS68(2009)1239–1256availableatwww.sciencedirect.comwww.elsevier.com/locate/ecoleconANALYSIS☆InstitutionalizedpollutionhavensMatthewA.Colea,⁎,PerG.FredrikssonbaDepartmentofEconomics,UniversityofBirmingham,Birmingham,B152TT,UKbDepartmentofEconomics,UniversityofLouisville,Louisvi
2、lle,KY40292,USAARTICLEDATAABSTRACTArticlehistory:Amultiple-principal,multiple-agentlobbygroupmodelsuggeststhattheeffectofforeignReceived18March2008directinvestment(FDI)onenvironmentalpoliciesisconditionalonthestructureofReceivedinrevisedform8July2008hostcountries'politicalinstitutionssuchasthe
3、numberoflegislativeunits(vetoplayers).Accepted24August2008Themodelalsoyieldsthenovelconceptof“aggregatehonesty”whichcombinesvetoAvailableonline10October2008playersandcorruption.FDIraisesenvironmentalpolicystringencywherethenumberoflegislativeunitsaremany(aggregatehonestyishigh),butreducesitwhe
4、rethelegislativeKeywords:unitsarefew(aggregatehonestyislow).OurpaneldataevidenceisfullyconsistentwithPoliticaleconomythesepredictions.AnadditionalcontributionistoshowtheempiricalimportanceofPoliticalinstitutionsendogenizingenvironmentalpolicyinPollutionHavenHypothesisstudies.OnlywhenVetoplayer
5、streatedasendogenousdoesenvironmentalpolicyhaveasignificantnegativeeffectonPollutionHavenHypothesisFDI.FDI©2008ElsevierB.V.Allrightsreserved.JELclassification:Q28;D72;D73;F18;F211.Introductionintensiveproductionhasbecomethesubjectofarapidlygrowingbodyofliteratureinrecentyears.KnownastheTheasse
6、rtionthatcountrieswithrelativelyweakenviron-PollutionHavenHypothesis(PHH),theargumentisoftenmentalregulationswillincreasinglyspecializeinpollutiontestedbyexaminingtheimpactofenvironmentalregulationsonpatternsofforeigndirectinvestment(FDI)(see,e.g.,ListandCo,2001,XingandKolstad,2002).However,th
7、eliteraturecontainsveryfewinvestigationsofthereverserelationship,i.e.thepossibleeffectsofFDIonenvironmentalregulations—1☆Wearegratefultothehelpfulreferees,JayasriDutta,DerektheonlyexceptionisColeetal.(2006),toourknowledge.ThisKellenberg
