Economic Integration, Environment, and Development: Assessing the Mexican Experience

This study empirically tests the environmental kuznets curve hypothesis and the pollution haven hypothesis for Mexico during the period 1985 to 1999. Consistent with the peer-reviewed literature, this study finds no empirical support for these theories for the case of Mexico. This study will show that on a national level, a number of environmental conditions worsened in Mexico despite the rising incomes that many predicted would trigger reductions in environmental degradation. However, this has not occurred because dirty industry in the U.S. flocked there. Rather, environmental degradation worsened because the Mexican and U.S. governments did not instate adequate environmental policies that would have coupled environmental benefits from economic integration.