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The role of international trade in climate change

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Abstract

This paper examines the role of international trade on climate change. The impact of climate change varies by crop and location causing production and trade patterns to evolve and adapt given the new conditions. In particular, we look to implement climate change effects such as sea level rise on the availability of land, productivity changes caused on wheat, paddy rice, and other grains, and productivity changes caused on value added. Trade acts a conduit that could help ameliorate the negative of climate change, but it could also lead to increase the emissions of greenhouse gas emissions. We will simulate trade restrictions to help evaluate the relevance of trade when climate change shocks are considered. We use an experimental version of GTAP that calibrates agricultural production using FAO data to supplement the countries beyond what is already targeted with OECD data in the standard GTAP Data Base. Combined with the GTAP-E model we are able to track the emissions of each simulation in addition to welfare changes and the distributional impact across countries.

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  • Aguiar, Angel, 2020. "The role of international trade in climate change," Conference papers 330203, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:330203
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    File URL: https://ageconsearch.umn.edu/record/330203/files/9837_Aguiar.pdf
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    1. Arnaud Costinot & Dave Donaldson & Cory Smith, 2016. "Evolving Comparative Advantage and the Impact of Climate Change in Agricultural Markets: Evidence from 1.7 Million Fields around the World," Journal of Political Economy, University of Chicago Press, vol. 124(1), pages 205-248.
    2. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685, December.
    3. Angel Aguiar & Maksym Chepeliev & Erwin L. Corong & Robert McDougall & Dominique van der Mensbrugghe, 2019. "The GTAP Data Base: Version 10," Journal of Global Economic Analysis, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, vol. 4(1), pages 1-27, June.
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