International cooperation is at the core of multilateral climate policy. How is its effectiveness harmed by individual countries dropping out of the global mitigation effort? We develop a multisector structural trade model with emissions from production and a constant elasticity of fossil fuel...

This review summarizes the empirical literature on the effects of natural disasters and weather variations on international trade and financial flows. Regarding the effects on trade, I summarize 21 studies of 18 independent research teams and show that there is a large diversity in terms of...

This paper discusses the interplay between international trade, regional adaptation to climate change and financial transfers for funding adaptation. It combines insights from a theoretical model of North-to-South transfers with the findings of a calibrated dynamic multi-region multi-sector...

We estimate the effects of a European Carbon Border Adjustment (CBA) mechanism on exports, real GDP, welfare and emissions using the multi-region, multi-sector structural gravity model of Larch and Wanner (55). Incorporating the main industries covered in the proposal of the European Commission...

Global value chains (GVCs) play a crucial role in today's international trade. High value-added activities tend to cluster at the start and the end of GVCs, resulting in a U-shaped relationship across production steps known as the "smile curve". The distribution of CO2 emissions along the value...

International cooperation is at the core of multilateral climate policy. How is its effectiveness harmed by individual countries not participating in the global mitigation effort? We use a multi-sector structural trade model with carbon emissions from production and a constant elasticity of...

We study the endogenous formation of climate coalitions linked to a preferential free trade arrangement. In a multi-stage, micro founded strategic trade and participation game, coalition and fringe countries dispose of a discriminatory tariff on dirty imports as well as emission permits imposed...

We examine numerous settings in which large strategic nations make environmental policies in the presence of international trade and form coalitions that aim to mitigate global or continental transnational pollution. We show that every nation has incentives to internalize all emission...

International cooperation is at the core of multilateral climate policy. How is its effectiveness harmed by individual countries not participating in the global mitigation effort? We use a multi-sector structural trade model with carbon emissions from production and a constant elasticity of...

To date, border adjustment measures in the form of emissions allowance requirements (EAR) under the U.S. proposed cap-and-trade regime are the most concrete unilateral trade measure put forward to level the carbon playing field. If improperly implemented, such measures could disturb the world...