The trade-environment relationship has received increasing attention since Nineties. Not only trade affects environmental quality through a reallocation of production activities, but environmental policy can also influence the choice of plant location, affecting trade flows. According to several studies, international trade increases the number and the varieties of inputs and technologies that can be used to increase domestic production. More recently, the interest has been on the intersection between trade and climate change policies.
A new research paper by CIP (Climate Impacts and Policies. An Economic Assessment) division used a dynamic CGE model to assess the intertemporal and spatial dimension of technology spillovers embodied in international trade within a climate and trade policy framework.

The study assesses the net contribution of modeling trade spillovers within three policy scenarios. The aggregated net effects of spillovers are rather small confirming findings from previous studies. However, there are important international and intersectoral redistribution effects due to technology transfers represented as embodied spillovers.

Read the full research paper:
Technology spillovers embodied in international trade: Intertemporal, regional and sectoral effects in a global CGE framework – E. De Cian, R. Parrado – Divisione CIP – Marzo 2012.

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