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SITE Seminar | Industrial policy and global public goods provision: Rethinking the environmental trade agreement

Welcome to the next SITE seminar! On 30 April, Pia Andres, PhD student from London School of Economics, will present her working paper entitled "Industrial policy and global public goods provision: Rethinking the environmental trade agreement" at SSE.

Working paper title: 'Industrial policy and global public goods provision: Rethinking the environmental trade agreement'

By: Pia Andres


Countries around the world employ anti-dumping duties, local content requirements and other protectionist measures to safeguard their low carbon industries, inadvertently inflating downstream costs. Concurrently, they attribute insufficient climate action to the economic burden of mitigation efforts. This paper introduces a strategic model featuring two countries, two time periods, and trade in a clean technology in a set up with differential production costs and imperfect competition. The findings suggest that when production cost disparities surpass a critical threshold, and learning-by-doing facilitates catch-up for the laggard, opting for autarky during Stage 1 can enhance overall welfare for both countries. This result is strengthened when both countries use consumer subsidies. Furthermore, when both consumer and producer subsidies are available, the Subgame Perfect Nash Equilibrium involves both trade and production subsidies on the part of the laggard country and the same welfare payoffs as perfect competition. The analysis suggests that an environmental trade agreement is most likely to be beneficial if production subsidies for clean technology are permitted.

About the speaker

Pia Andres is currently completing her PhD in Environmental Economics at the London School of Economics. (Click on "Expand" below to learn more)

She recently joined the Centre for Economic Performance as a Research Economist in Productive and Inclusive Net Zero and the Programme on Innovation and Diffusion.

She's particularly interested in the interdependencies between technological change, trade and geopolitics, and what they imply for the just transition towards a low carbon economy, as well as technological transitions more broadly.

Learn more about the speaker >>

Interested in attending the SITE Seminar at SSE or online via Zoom?

The link to the seminar will be distributed by invitation only. If you are interested in attending the seminar – please contact site@hhs.se. Follow the instructions below:

  • Type the subject box with “SITE seminar *INSERT SEMINAR TITLE*”
  • Indicate your affiliation and field of interest
  • Please also indicate if you want to attend in person or online

For registered applicants, a Zoom link will be provided prior to the event via email with further instructions.

Photo: Deemerwha studio, Shutterstock


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