International trade spillovers and vague politicians

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The terms "globalization" and "climate change" have become defining expressions in recent decades, with globalization contributing to significant fossil fuel consumption and greenhouse gas emissions. This dissertation explores their interaction, particularly how climate change impacts are distributed through the international trading system, influencing the assessment of global warming costs and climate policies. Chapter 2 employs a dynamic computable general equilibrium model to analyze how climate change costs spread across regions via international trade. It reveals that spillover damages can significantly affect total climate change costs, especially in regions with low exposure and high adaptive capacities, where such effects can account for a third of total costs. Chapter 3 investigates whether funding adaptation measures in foreign countries can reduce indirect climate costs, demonstrating that such funding can yield positive welfare effects for donor nations, particularly industrialized ones. Chapter 4 extends the model to examine the interplay between international trade and climate policy, focusing on the effectiveness of border carbon adjustments. It analyzes unilateral climate policy principles and welfare effects of carbon import tariffs to assess their potential as a credible threat to compel non-abating countries to adopt stricter policies. Lastly, Chapter 5 addresses policy uncertainty's impact on China's emiss