This study examines how policies affecting the cost of using fossil fuels in production influence comparative advantage in the industrial sector. Firstly, we use a fixed-effects gravity model to estimate the export capabilities that determine comparative advantage. Subsequently, using data on...

This paper revisits the exporter’s environmental premium (EEP) by incorporating emissions embodied in domestically and internationally sourced intermediate inputs. Combining administrative firm-level data and customs records for German manufacturers with an environmentally extended...

The empirical evidence for the so-called pollution haven hypothesis, which predicts that inter-country differences in environmental policy stringency will cause pollution-intensive production to relocate to countries with lax environmental standards, has traditionally been weak. However, in...

This paper quantifies the effects of a hypothetical $40 per ton of CO2 tax on maritime transport implemented worldwide. Calculations are based on trade data covering the 2012-2018 period for 185 countries and on a multisector structural gravity model designed to isolate seaborne trade and to...

The international shipping sector is a vital part of the global trading system but also a large emitter of carbon dioxide emissions. In the absence of a multilateral carbon policy for the shipping sector, different countries are starting to impose unilateral measures to decarbonize maritime...

We study long-run environmental impacts of trade liberalization on US manufacturing by exploiting a plausibly exogenous reduction in US trade policy uncertainty: the conferral of Permanent Normal Trade Relations (PNTR) to China. Using detailed data on establishment-level pollution emissions and...

The Article proposes new interpretations of GATT Article XX to minimize the harmful effects of recent WTO jurisprudence that threaten to undermine the goals of the trading system and diminish the role of states in policymaking. In the Shrimp/Turtle cases the WTO's Appellate Body (AB) utilized an...

Climate and trade policy present serious contemporary challenges for all nations. Developed market economies are struggling with trade policy in the modern era of globalization, and the resulting realignments are straining the post-war international economic order. National emissions pledges...

This paper documents a new fact, then analyzes its causes and consequences: in most countries, import tariffs and non-tariff barriers are substantially lower on dirty than on clean industries, where an industry's “dirtiness” is defined as its carbon dioxide (CO2) emissions per dollar of...

This paper shows that greater global spatial correlation of productivities can increase cross-country welfare dispersion by increasing the correlation between a country's productivity and its gains from trade. We causally validate this general-equilibrium prediction using a global climatic...