Contributions of IIT Bombay researcher to the field that won the 2023 Nobel Prize in Physics

pollution haven hypothesis

Mumbai
24 May 2018

There exists a theory among economists called the ‘pollution haven hypothesis’ that talks about how foreign investments are related to environmental regulations. It states that companies from developed countries often seek to set up manufacturing units in developing countries not only because they can obtain cheap labour and resources, but also because environmental regulations in these countries are usually lenient, reducing the cost of compliance.  But does empirical data support this hypothesis?