NAFTA and the Pollution Haven Hypothesis

The “Pollution Haven Hypothesis” is the prediction that trade liberalization will lead to the movement of polluting industries from high income/stringent environmental regulation countries to low income/lax environmental regulation countries. This prediction has led to concerns that NAFTA would be an environmental disaster for Mexico. The three articles included in this collection investigate the post‐NAFTA environmental performance of Mexico using both aggregate data on pollution emissions as well as firm‐level data on environmental abatement efforts. In this article, I summarize the contribution in the context of the trade/environmental literature and provide some suggestions for future work.