Question

What is meant by the pollution haven hypothesis.

Why might it be difficult to prove the existence of this theory? Be specific

and please don't copy the same answer it is already posted in chegg .

Answer 1

Pollution haven hypothesis states that large scale companies always try to use the cheap labor and resources that are mostly available in the underdeveloped or in developing nations. The variations in labor and resources cost arises from the fact that underdeveloped and developing nations don’t include the cost of environmentally unsound practices that these companies can do in second or third world countries and these countries serves as a pollution haven for the large scale companies.

It is very difficult to prove the existence of this hypothesis because the companies don’t make their entirely in second or third world countries but they built a part of their final product (specially those parts which produce high volume of pollutants or require high resources) and then assemble these modules in their own country (assembly won’t require that much resources or won’t produce that much pollution) and hence they show that they are making the product in their own country.