This paper examines how physical climate exposure affects firm performance and global supply chains. We document that heat at supplier locations reduces the operating income of suppliers and their customers. Further, customers respond to perceived changes in suppliers’ exposure: when...

Even though the Paris Agreement does not include any trade-related provisions, trade has the potential to play a major role in the implementation of the response measures enshrined by the Parties in their Nationally Determined Contributions (NDCs), while creating opportunities for many countries...

In the climate-trade debate, moderate attention is dedicated to the role of trade agreements on climate. In turn, trade agreements could help countries meet climate goals by removing tariffs, harmonizing standards on environmental goods, and eliminating distorting subsidies on fossil fuels. This...

This report investigates the implications of regionalism for the interaction between trade and climate policy. It examines the implications of regional climate governance for international trade and conversely the implications of regional trade governance for climate change action. Regional...