This paper investigates how changes in the international division of labor can contribute to reducing CO2 emissions. The mitigation potential and costs implied by this mechanism are analyzed. Implications for the aluminium sector are assessed, including changes in the price of aluminium when...

This paper describes an extension of Duchin's World Trade Model to include the explicit representation of transportation costs, permitting the endogenous determination of bilateral trade &degree;ows and region-specific prices. The original model is a linear program that, based on comparative advantage...