The role of trade in adaptation to climate change
Christophe Gouel, David Laborde
Given our collective failure to mitigate greenhouse gas emissions, the world will need to adapt to a particular degree of climate change. This might imply that as climate change affects crops’ yield potential, new patterns of comparative advantage, and therefore new trade flows, will emerge. This column examines the need for the marketplace adaptations in mediating welfare losses in the agricultural sector. The findings suggest a big role for international trade: when adjustments in trade flows are constrained, global welfare losses from climate change increase by 76%.