Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/330918 
Authors: 
Year of Publication: 
2025
Series/Report no.: 
IWH Discussion Papers No. 19/2025
Publisher: 
Halle Institute for Economic Research (IWH), Halle (Saale)
Abstract: 
Climate policies do not operate in isolation but propagate through global production networks, affecting industries beyond national borders. This paper combines international input-output data with a granular instrumental variable approach to capture how foreign regulations transmit through upstream and downstream linkages. Distinguishing between market-based policies, non-market regulations, and technology support, the analysis shows that foreign climate policies can enhance domestic productivity, with effects shaped by industry characteristics and operating through technological adjustment along supply chains. The results underscore the importance of accounting for international spillovers when evaluating the economic impact of environmental regulation.
Subjects: 
climate policy
environmental regulations
global value chains
green innovation
international trade
productivity
JEL: 
F18
L16
O44
Q37
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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