Program > Papers by speaker > Davin Marion

Tuesday 13
D6 - Environment V
Chair: Marion Davin
› 15:15 - 15:40 (25min)
› Room 005 - E. Jaques-Dalcroze
How the unequal vulnerability to climate change spreads across countries through international trade
Marion Davin  1@  , Karine Constant  2@  , Antoine Le Riche  3@  
1 : Université de Montpellier-LAMETA
Université de Montpellier
2 : Université Paris Est, Erudite
Université Paris Est, Erudite
3 : School of Economics, Sichuan University

This paper examines how the cost of global pollution spreads from a vulnerable to a nonvulnerable
country through international trade. We treat this question in a North-South
trade overlapping generations model in which countries are unequally affected by damages
entailed by pollution. Taking this into account, we emphasize that there are some interactions
between pollution and comparative advantages that provide new insights regarding the gains
from trade. We obtain two important results that reinforce the economic arguments in favor
of non-vulnerable countries actions aiming at reducing damage from pollution in vulnerable
countries. First, the South's vulnerability can reduce the North's welfare even in the case
in which it improves its terms of trade. Second, South's vulnerability can be a source of
intergenerational inequity in the North.

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