🚨Job market paper🚨.Container ships are vital for global trade & large emitters of CO2. What happens when we tax their emissions? Check out my JMP:.Can Unilateral Policy Decarbonize Maritime Trade?.Paper: Website: #EconTwitter 1/10

RT @ClaudiaSteinwen: pls share with all trade and spatial PhD students! We would love to welcome them in Munich to the JIE summer school ne….

Thanks Jay! It was really nice meeting you in Banff. Hope you had a great start at the University of Alberta!.

RT @JayHyunEcon: I met @philipp_ludwig_ and served as a discussant of his JMP at the RMET Conference last Spring in Banff. It was an intere….

RT @honghao_zzz: Hey #EconTwitter!📢📢📢. Here is a 🧵 on my Job Market Paper!. “Death by Market Power: The Production-Safety Tradeoff in the C….

RT @TBesedes: Submit a paper to RMET and join us in Banff, Canada, May 23-25. Submissions due January 17,2025. @emilyjblanchard will give….

RT @c_decanniere: 🚨 Job Market Paper Alert🚨. What happens when OPEC’s market power meets climate policies? 🌍💡. Check out my JMP ‘Pump it? M….

RT @LeuvenEconomics: In this thread, #EconJobMarket candidate Philipp Ludwig presents his job market paper, 'Can Unilateral Policy Decarbon….

RT @zivoren: Take a look at Philipp!! He's obviously an excellent economist. But did you know he's also an amazing colleague and coauthor :).

🌍Big Picture. Unilateral measures like the EU’s 2025 carbon tax push decarbonization in the transport sector but also introduce trade-offs and inefficiencies. These unintended consequences highlight the complexity of policy design in global supply chains. @LeuvenEconomics 10/10.

💰Welfare trade-off. 🔹Unilateral policy lowers emissions but also suppresses global trade. 🔹Consequence: Decline in global welfare (across countries!). 🔹Why? Social benefit of emission savings < income loss from lower levels of trade. 9/10.

🏭What happens to production?. 🔹Carbon taxes for transport create environmental spillovers in production. 🔹Global production declines but emission intensity increases. 🔹What’s going on? Relative shift of production from EU (clean) to non-EU (dirty). 8/10.

🌱How do EU carbon taxes affect transport emissions?. 🔹Transport emissions fall in response to lower transport demand. 🔹BUT: Emission savings are 50% lower than anticipated. 🔹Reason: policy interference increases the fuel consumption of ships!. 7/10.

🚢Key mechanism. 🔹Cost incentives drive operators to allocate cleaner ships to high-traffic routes. 🔹Policies like carbon taxes interfere with the allocation process which lowers transport efficiency. 🔹Result: higher fuel consumption and carbon emissions per container. 6/10.

🛠️The model. To untangle these effects, I build & estimate a quantitative model featuring trade, transport and emissions. It explains how shippers allocate clean and dirty vessels to shipping routes to serve transport demand. Key novelty: emissions depend on the allocation!.5/10.

💡Two things to keep in mind:. Unilateral policy + global externality = lots of potential for carbon leakage.❓Are we just shifting dirty transport and production to non-EU routes/countries?. Carbon policy could lower emissions AND trade.❓Potential welfare trade-off. 4/10.

This raises two important questions:. 1⃣Can unilateral transport policy reduce carbon emissions in global supply chains?. 2⃣What are the welfare effects for countries around the world?. 3/10.

Some background:. Maritime shipping accounts for 3% of global CO2, but no binding multilateral carbon policy is in sight. Now unilateral measures are stepping in. From 2025: Carbon tax + fuel standards for all🚢journeys in EU waters (= 22% of global container traffic!). 2/10.