Conference Agenda

This paper explores the relationship between GVCs and international technological collaboration with a focus on collaborative eco-innovation. The role of GVCs and the net zero transition relates to the geographical fragmentation of production which creates a physical gap between the consumption and production of carbon emissions. Using patent data and trade between OECD countries and China we estimate a PPML regression with three-way fixed effects and show clear links between trade and collaborative eco-innovation. Specifically, a 1% increase in the domestic value-added content of exports and in the overseas value-added content of exports is shown to increase collaborative eco-innovation by 1.648 and 2.983 units (patents) on average, respectively. Given that the average number of collaborative patents is on average around 8 per year this translates into a 17% and 30% increase in patents, respectively. The mechanisms underpinning

these results and the policy implications are discussed.

We reassess the relationship between international trade and environmental performance by distinguishing two often conflated dimensions of openness: trade intensity and trade liberalization. Using sector-level data for OECD countries over two decades, we estimate multi–fixed-effects panel models for two environmental performance indicators—total sectoral CO2 emissions and carbon intensity (CO2/VA)—combining measures of openness with relative environmental-stringency indices for export and import partners. The results show that no single dimension of openness delivers, on average, robust emission reductions. Only when rising trade intensity is paired with effective liberalization—i.e., a regime of “genuine openness”—do we observe significantly “green’’ effects on emissions and carbon intensity. Moreover, regulatory asymmetries across partners yield configurations consistent with halo / Porter mechanisms when openness shifts toward stricter markets, and with carbon leakage [pollution haven] dynamics when dependence on laxer [stricter] suppliers increases. Overall, the findings suggest that the environmental impact of trade depends less on trade volume than on the interplay between the structure of openness and the international regulatory architecture.

This study examines the impact of critical raw materials (CRMs) and their processed derivatives on countries' exposure to lithium-ion battery price fluctuations. Specifically, we investigate how a country's position within the global trade network of CRMs and batteries influences the volatility of its terms-of-trade (TOT) for batteries. To this end, we construct a new country-level TOT price index for batteries and a series of network indicators at the country and supply chain levels. Using a panel regression framework covering up to 150 countries over 21 years, we estimate the effects of these indicators on price volatility. To address endogeneity between trade structure and price volatility, we adopt a Shift Share Instrumental Variable (SSIV) approach.

Our results show that the relationship between trade networks and price volatility depends on both the supply-chain stage and the direction of trade. Import diversification significantly reduces countries’ vulnerability to battery price shocks. Beyond local connectivity, global network position plays an independent role: countries more centrally embedded in trade networks are better able to absorb shocks and mitigate price volatility.

This paper examines the unintended effects of noncooperative tariff hikes on global green-house gas emissions. Using a multi-country, multi-industry quantitative trade policy model, we evaluate protectionist and retaliatory scenarios shaped by the current geopolitical landscape and assess their impact on the carbon footprint of international trade. Our findings reveal that while noncooperative tariffs suppress economic activity - leading to modest emission reductions - they also restructure trade networks in ways that increase reliance on carbon-intensive production. As a result, arbitrary protectionist measures risk driving globalization towards a less sustainable path.