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This article uses firm × national market export and import data for all Swedish private sector firms for 1997–2014 to examine the firm‐level contribution of trade and foreign ownership to the correlation between Swedish value added growth and partner country gross domestic product (GDP) growth. Export and import links increase the firm‐level correlation but net out for firms that both export to and import from the same market, evidence that this type of 'natural hedging' can help reduce a firm's exposure to foreign economic shocks. We proceed to aggregate the firm‐level results to the whole economy and find that severing firm‐level ties with a foreign market is predicted to lower the correlation between Swedish value added growth and foreign GDP growth from 0.72 to 0.64 on average. Gabaix's 'granularity' of trade is central to this result: if all firms are given equal weight overall correlations are essentially unaffected by severing firm level ties. Natural hedging is quantitatively important at the firm level and also plays a role in limiting overall comovements. [ABSTRACT FROM AUTHOR]

China launched the first Operation Green Fence (OGF) on 1 February 2013 to fend off inflows of illegal waste. The main objective of OGF was to enforce waste trade policies already adopted by China and thereby restrict illegal waste imports. We use a gravity model of international trade with annual bilateral waste trade data at the 6‐digit HS code level to assess the impact of OGF on the international waste trade. First, we study the direct impact of OGF and find that the intervention resulted in a 26% drop in low‐quality waste exports to China from developed countries. Second, we assess the impact of OGF on exports from developed countries to developing countries, excluding China. We do not find a statistically significant effect of OGF on low‐quality waste exports from developed countries to developing countries (excluding China). We also test the waste haven hypothesis and do not find evidence that waste exports were disproportionately diverted to countries with lax environmental regulation. [ABSTRACT FROM AUTHOR]

Abstract: It is suggested that trade measures should be used to induce exporters to adopt more ambitious climate policy and reduce global emissions. However, a tariff and the exporter's emission tax are likely substitutes, which would undermine the rationale for these trade measures. This paper examines incentives to regulate the climate under border carbon adjustment (BCA), defined as an import duty of a magnitude determined by the difference in emission taxes between trade partners. Unlike a tariff, a BCA can induce the exporter to adopt a higher tax, suggesting that the BCA and tariff are not equally effective at targeting global emission levels and that the features of the border measure matter in assessing the effectiveness of trade policy in targeting global emissions. [ABSTRACT FROM AUTHOR]

This paper investigates the role of governance dimensions in socio-economic transitions in line with degrowth, i.e., an equitable downscaling of the economy. Our focus is on experiences from the 2008 economic crisis in Latvia and Iceland. Although these cases are not in themselves examples of degrowth, we see them as important sources of empirical learning from major socio-economical transitions; furthermore, we see crises as possible starting points for future degrowth transitions. This paper applies a governance framework to explore the vast differences in management strategies and crisis outcomes in Latvia and Iceland. In Iceland, public resistance led to a shift in policy measures such that economic inequality and the negative social consequences of the crisis decreased. In Latvia, public resistance existed but had no strong influence. The outcome in Latvia included none of the elements of equitable downscaling found in the case of Iceland. These two cases show how differences in formal institutional arrangements, political culture and societal trust affect different governance dimensions during a time of crisis. The analysis illustrates the importance of institutional and governance dimensions in major socio-economical transitions, and demonstrates how they influence the kind of transition that can be realized. [ABSTRACT FROM AUTHOR]