Agriculture, Trade, and Global Water Use
Levi Crews (UCLA) shows how global agricultural trade substantially reduces water extraction worldwide by concentrating water-intensive production in water-abundant regions. Yet because water markets are distorted and access is largely open, the water consequences of trade policy depend critically on where production moves, making blanket trade restrictions neither a reliable nor general solution to water scarcity.
Do common shocks drive changes in aggregate emissions intensity?
Fulvia Marotta (Smith School, DNB) , Xiyu Ren (Smith School and INET), and Francois Lafond (INET) examine industry-level emissions intensity in the UK from 1990 to 2022, using emissions data constructed from activity-based environmental accounts and find evidence of co-movement.
Environmental policy in distorted markets: Regulating emissions in agricultural supply chains
Tomas Dominguez-Iino (University of Chicago) tackles the question of how to design environmental policy in an industry where Pigouvian taxation is not feasible at the externality’s source, and where pre-existing distortions show up in the form of market power.
The complex interplay of climate physical risks and globalization
Richard Senner and Andrea Vismara (Complexity Science Hub) contribute to a better understanding of the transmission of physical risks across supply chains.
Climate Policies and Protectionism
In this brief, we ask whether the implementation of national climate policies may spur a global race to protectionism. Consumer or production subsidies and border carbon adjustments may have positive mitigation effects but can also generate trade distortions and give national industries a competitive advantage against foreign firms.
Quantifying trade-related transboundary climate risks
Nina Knittel (University of Graz) sheds light on the research investigating how physical damages from one region can spill-over to trading partners.