Trade with differentiated goods normally provides a form of insurance against disasters, such as floods and fires, through an increasing relative price of goods from the afflicted country. With open access renewable resources this is reversed. A country hit by a negative shock recovers faster if...

This paper develops a framework for analyzing the incentives of national transmission system operators (TSOs) to supply cross-border interconnection capacity in an international electricity market. Our results show that equilibrium transmission capacity is downward distorted, even in situations...

Production of commodities based on open-access renewable natural resources (NR) has usually been examined under "low" congestion (LC) – where MC AC and both increase with output. I identify two additional congestion categories, "high" (HC) and "super" (SC) congestion – where AC is...

Production of commodities based on open-access renewable natural resources (NR) has usually been examined under "low" congestion (LC) - where MC AC and both increase with output. I identify two additional congestion categories, "high" (HC) and "super" (SC) congestion - where AC is...

Numerous developing economies depend vitally on renewable natural-resource (NR)-based commodities. This study develops a general equilibrium model to examine the steady-state impact of changes in a small economy's NR congestion under open access and optimal regulation. This issue has often been...

We construct a new database which covers production and trade in 136 primary commodities and 24 manufacturing and service sectors for 145 countries. Using this new more granular data, we estimate spillover effects from plausible trade fragmentation scenarios in a new multi-country, multi-sector,...

Recent literature on biofuels has questioned whether biofuels policies are likely to reduce the negative effects of climate change. In this paper we make two contributions to the literature. First, we study the market effects of a renewable fuel standard in a dynamic model taking into account...

This article explores the links between climate neutrality and sustainability in the context of international trade. For that, it tackles seven main concerns: 1) what do industry leaders now need from policymakers to make them the frontrunners in the global transition to climate neutrality? 2)...

Global climate change is a multi-faceted international crisis that requires creative and flexible regulatory solutions. Addressing the principal anthropogenic cause of climate change—carbon dioxide emissions from the burning of fossil fuels—has been the focus of the international response to...

Despite the rising concern over the economic costs of biological invasions, no general modeling approach of these costs has been developed. The purpose of this note is to develop such a framework, and to demonstrate how conventional bioeconomic models of interspecific competition, such as the...