According to the International Energy Agency (IEA), the Indian power sector is the highest emitter of carbon dioxide (CO2). In 2021, the power sector emitted 1104 MT of CO2 which was about 45% of the total emissions. Next was the industrial sector which emitted about 762 MT of CO2. Within the...

This paper studies the industry-level and aggregate implications of financial development on international trade. I set up a multi-industry general equilibrium model of international trade with heterogeneous firms subject to financial frictions. Industries differ in capital-intensity, which...