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Climate mitigation policy and restructuring of the global value chains

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  • Chepeliev, Maksym
  • Maliszewska, Maryla
  • Rodarte, Israel Osorio
  • Pereira, Maria Filipa Seara
  • van der Mensbrugghe, Dominique

Abstract

Climate change and the respective policies for carbon emission reductions will test the resilience of global value chains and shape them. Shocks in production and trade can be transmitted from one country to another by global value chains, although they can also help to lessen the blow of a domestic shock. This paper explores simulations from the ENVISAGE global computable general equilibrium model to enhance understanding of the potential longer-term impacts of environmental policies. It evaluates the key factors shaping the global economy with stylized scenarios that capture the essential elements of policies to achieve carbon emission reductions that will have an impact on trade.

Suggested Citation

  • Chepeliev, Maksym & Maliszewska, Maryla & Rodarte, Israel Osorio & Pereira, Maria Filipa Seara & van der Mensbrugghe, Dominique, 2022. "Climate mitigation policy and restructuring of the global value chains," Conference papers 333405, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
  • Handle: RePEc:ags:pugtwp:333405
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    File URL: https://ageconsearch.umn.edu/record/333405/files/11177.pdf
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    References listed on IDEAS

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    1. James X. Zhan, 2021. "GVC transformation and a new investment landscape in the 2020s: Driving forces, directions, and a forward-looking research and policy agenda," Journal of International Business Policy, Palgrave Macmillan, vol. 4(2), pages 206-220, June.
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    Keywords

    International Relations/Trade; Environmental Economics and Policy;

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