Itzhak, Zahi, & Viehs, B. K. (2019, February 04). Harvard Business Review Research: When Environmental Regulations Are Tighter at Home, Companies Emit More Abroad. Retrieved from https://hbr.org/2019/02/research-when-environmental-regulations-are-tighter-at-home-companies-emit-more-abroad

This research paper discusses a study done by Harvard University investigating the rate of greenhouse emissions per country based on their imports, exports, and manufacturing locations. The study found that when a country such as the United States tightens their environmental regulations and begins to emit less, a country they have (usually manufacturing) relations with will increase their emissions at a similar rate. The underlying evidence indicates that the emissions were effectively just transferred overseas to a location with less strict regulation, sometimes called a pollution haven.

This is an issue which we have been trying to tackle in other industries for  a while and has proven very difficult to enforce. For example, US citizens may hold assets overseas in tax haven countries where they can get away with paying lower taxes. It is imperative however that we solve this problem as it offsets any positive changes that happens in a country. I think a great way to approach this dilemma is from a point of global treaties such as the Paris accord, but making sure that less developed or wealthy countries are still included, as these often have large manufacturing industries or other energy-intensive/environmentally destructive practices.