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Climate Risk and International Trade: Navigating Challenges for Sustainable Development

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  • Xiaohang Ren

    (School of Business, Central South University, Changsha 410083, P. R. China)

  • Yan Cheng

    (School of Business, Central South University, Changsha 410083, P. R. China)

  • Yi Jin

    (��School of Business, Macau University of Science and Technology, Macau S.A.R., P. R. China)

Abstract

This study explores the impact of climate risks on international trade facilitation across 83 countries, adopting a spatial perspective. Our findings reveal a significant negative relationship between climate risks and trade facilitation, with innovation capacity and economic freedom being two key channels driving this causality. Furthermore, the effects of climate risks on trade facilitation vary depending on the development level of the countries involved and their roles as importers or exporters. As geographic distance increases, the spatial effect on trade facilitation follows a distance-decay pattern. These results provide valuable insights into the complex interplay between trade patterns, climate policy coordination, and international cooperation, emphasising the need for integrated strategies to address climate risks in global trade systems.

Suggested Citation

  • Xiaohang Ren & Yan Cheng & Yi Jin, 2025. "Climate Risk and International Trade: Navigating Challenges for Sustainable Development," Journal of Environmental Assessment Policy and Management (JEAPM), World Scientific Publishing Co. Pte. Ltd., vol. 27(03), pages 1-24, June.
    • Handle: RePEc:wsi:jeapmx:v:27:y:2025:i:03:n:s1464333225500097
    DOI: 10.1142/S1464333225500097
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