earticle

영어

This study analyzed the impact of strengthening environmental policy stringency on Korea’s exports. A generaliz ed gravity model was used for analysis. Merchandise exports and service exports are used as dependent variables for Korean exports, and OECD’s environmental policy stringency index and its three sub-indexes are used as the strengthening of environmental regulations. The analysis period is from 1990 to 2020 for merchandise exports, and from 2005 to 2020 for service exports due to limitations in data usage. The analysis results are as follows. First, it was found that as the environmental regulations of trading partners become stronger, Korea’s merchandise exports increase. Second, as the market-based environmental regulations of trading partners become stronger, Korea’s exports of goods and services appear to increase. These two results support the pollution haven hypothesis. Third, Korea’s merchandise exports can be explained through the Heckscher-Ohlin-Samuelson model. Fourth, the results of Korea’s service exports support Linder’s hypothesis when controlling for the effect of the market-based EPS gap.