BIRDS OF A FEATHER FLOCK TOGETHER: ECONOMIC DEVELOPMENT, TRADING NETWORK, AND CARBON EMISSIONS
Abstract
AbstractUsing data from 144 countries, we employ a bilateral trade matrix to capture the link between trade, economic development, and carbon emissions. We find that emissions decreased within a trading network of developed countries when their trading partners experience an increase in economic development; by contrast, emissions increased within the trading network of developing countries when their trade partners developed. Our findings suggest the prospect of forming multi-tier Climate Clubs – designed along Nordhaus (2015, 2021) - where trade agreements are tied to members’ commitment to reduce emissions based on their development status.
Fields of Study & Subjects
Climate Change Policy and Economics
Publication details
- Journal / source
- Climate Change Economics
- Publisher
- World Scientific Pub Co Pte Ltd
- Volume
- 17
- Issue
- 04
- Publication date
- 17 April 2026
- Language
- EN