Dear colleagues, The Department of Economics cordially invites you to the WU Research Seminar in Economics on Wednesday, April 22nd, with Farid Farrokhi (https://www.faridfarrokhi.com/) presenting: "A Framework for Integrating Climate Goals into Trade Agreements". Abstract: This paper develops a framework for integrating carbon pricing into existing international trade agreements, which traditionally have overlooked climate concerns. We start by showing that: (i) Countries benefiting most from trade agreements also generate higher trade-related emissions. (ii) National-level carbon taxes create pecuniary terms-of-trade externalities, causing the burden of carbon taxes imposed in one country to fall onto consumers elsewhere. Finding (i) indicates that contingent trade reforms that link market access to carbon pricing could effectively reduce emissions. However, due to the pecuniary externalities described by(ii), a redistribution mechanism may be necessary to equalize the tax burden internationally. To address this, we propose a Global Climate Fund to redistribute border-related carbon tax revenues. Quantitative analysis reveals that even a simple fund allocation mechanism could incorporate carbon pricing of up to $119 per ton of CO2 within current trade regimes, achieving a 50% reduction in global emissions. * Date: Wednesday, April 22nd * Time: 4.30 to 6 pm (CET) * Location: building D4, entrance A, ground floor, D4.0.144<https://campus.wu.ac.at/?q=D4.0.144> With best regards, Harald Oberhofer --- Univ.-Prof. Dr. Harald Oberhofer Department of Economics WU Vienna University of Economics and Business Phone: +43/1/31336-4984 Email: harald.oberhofer@wu.ac.at<mailto:harald.oberhofer@wu.ac.at> https://www.wu.ac.at/en/economics/people/oberhofer-h Austrian Institute of Economic Research (WIFO) Phone: +43/1/7982601-468 Email: harald.oberhofer@wifo.ac.at<mailto:harald.oberhofer@wifo.ac.at> http://www.wifo.ac.at/harald_oberhofer