Climate change affects agricultural production through land productivity and multicropping capacities. Given agriculture’s substantial contribution to both income and employment in developing economies, evolving agro-climatic conditions can reshape labor reallocation and agricultural production. I develop a dynamic spatial general equilibrium model incorporating farmers’ optimal crop choices, international trade, and forward-looking migration. Under RCP 8.5, global welfare effects on agricultural workers are modest but vary significantly across countries. Results highlight that the general equilibrium effects of labor mobility are nontrivial, and domestic structural transformation can play a crucial role in mitigating the adverse impacts of climate change.

We build a dynamic multi-region model of climate and economy with emission permit trading among 12 aggregated regions of the world. We solve for the dynamic Nash equilibrium under noncooperation, wherein each region adheres to the emission cap constraints following commitments that were first outlined in the 2015 Paris Agreement and later strengthened under the Glasgow Pact. Our model shows that the emission permit price reaches $923 per ton of carbon by 2050, and global average temperature is expected to reach 1.7 degrees Celsius above the pre-industrial level by the end of this century. We demonstrate, both theoretically and numerically, that the regional social cost of carbon is equal to the difference between the regional marginal abatement cost and the permit price. We find significant heterogeneity in the regional social cost of carbon, and that global emission trading has little impact on this measure. We also find that when the regional emission caps are lax, and therefore non-binding, a global emission trading system may lead to higher emissions under noncooperation, underscoring the necessity of maintaining stringent global emission caps to ensure efficient functioning of the emission trading system.

In this paper, the effect of non-tariff measures (NTMs) on upgrading of food product quality is analyzed. Based on a multi-sector Schumpeterian model, and given threat of entry, compliance costs, and monopoly profits, NTMs are predicted to have heterogeneous effects on quality upgrading. Using disaggregated data for 14 European Union (EU) countries across 18 food industries for the period 2008-2019, NTM enforcement is found to deter quality upgrading for products distant from the quality frontier due to compliance costs. Conversely, NTM enforcement stimulates quality upgrading for products close to the quality frontier, given an increased probability of capturing monopoly profits.