The present paper empirically investigates whether competitive pressures and Japanese compliance with the Kyoto Protocol will turn China into a pollution haven. We also analyze how the bilateral division of commodity production stimulates eco-efficiencies (i.e. environmental productivities) in Japan and China and how eco-efficiencies in the respective countries affect each other. Empirical results revealed that competitive pressure and Japanese compliance with the Kyoto Protocol did not contribute to turning China into a pollution haven. We also find that if we focus on national eco-efficiencies, China and Japan are unable to develop a mutually beneficial relationship between the eco-efficiencies in both countries.
All Science Journal Classification (ASJC) codes
- Economics and Econometrics