… does not affect competitiveness
Powerful legislation on air quality has had no significant effect on EU industrial competitiveness, according to a study by the European Commission’s Enterprise Directorate. The study found that, despite the EU having more strictly enforced air pollution controls than the US or Japan, there is no evidence of industry relocation to areas of weaker legislation.
In fact, the EU has seen a rise in manufacturing productivity while at the same time reducing emissions in greenhouse gases, ozone-depleting gases and acidifying gases. The report goes on to say that in both the EU and US, industrial environmental expenditure as a percentage of gross value added is around 0.4%, and that as long as these remain at roughly the same level, than the competitiveness effects are likely to be limited.
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