Perspectives on Pollution Abatement and Competitiveness: Theory, Data, and Analyses

The implementation of environmental regulations has raised concerns about the effect of pollution abatement on the competitiveness of firms, industries, and nations. These concerns have led to efforts to assess the relationship between pollution abatement and competitiveness. This article presents national- and industry-level data on pollution abatement costs and emissions, and discusses the theoretical and empirical literature on the link between pollution abatement and competitiveness. The article first reviews theoretical perspectives on the link between competitiveness and pollution abatement. Next, historical data on pollution abatement costs and emissions across nations and industries are summarized. Finally, the article reviews the empirical evidence on the link between pollution abatement and indicators of competitiveness.