Many environmentalists worry that an unintended consequence of differential enfo

Question

Many environmentalists worry that an unintended consequence of differential enforcement of environmental regulation by nations will lead to the formation of "pollution havens." Read the following article: http://www.nytimes.com/2011/12/09/science/earth/recycled-battery-lead-puts-mexicans-in-danger.html (a) What is the "pollution haven hypothesis?" How does it relate to the article? (b) Why is the pollution haven hypothesis more likely to be correct in the case of recycled batteries than in the case of, say, sock production? (c) Suppose you wanted to write your Ph.D. thesis on testing the pollution haven hypothesis using a statistical analysis. Discuss an ideal experimental design that would allow for a convincing test of this hypothesis.

Explanation / Answer

a)Pollution Haven Hypothesis-When large industrialized nations seek to set up factories or offices abroad, they will often look for the cheapest option in terms of resources and labor that offers the land and material access they require.This practice is know as Pollution Haven Hypothesis.

It relate with the case of recycled batteries in the article.

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