8/Looking forward to feedback and discussion!
#EnvironmentalEconomics #TradeAndEnvironment #Scope3 #CarbonAccounting #FirmLevelData #GlobalSupplyChains

7/
We test the model’s prediction with a shift-share IV strategy:
▶️ Rising foreign demand reduces firms’ production-related emissions intensity
▶️ But does not affect the total emissions intensity, which includes embodied emissions

6/ Why does this happen?
We build a model where exporters source more intensively (and differently) due to larger market size — which leads to cleaner production, but potentially more emissions embodied in materials.

5/ 3. The established finding that exporters are less emission-intensive reverses once embodied emissions are accounted for.

4/ 2. Embodied emissions are more important for exporters, especially those embodied in imports, than for non-exporting firms

3/ 1. Embodied emissions account for more than 50% of total emissions for most firms.

2/ We combine administrative German firm-level data with an environmentally extended input-output database to build firm-specific emissions intensities — covering:

▪️Production-related emissions
▪️Emissions embodied in domestic inputs and imported inputs

🔍 We document three stylized facts:

1/ A substantial share of global emissions is embodied in trade flows.

▶️How important are embodied emissions at the firm level?

▶️Does accounting for them affect the established finding that exporting firms produce less emission intensively?

New WP:
"𝘾𝙡𝙚𝙖𝙣 𝙋𝙧𝙤𝙙𝙪𝙘𝙩𝙞𝙤𝙣, 𝘿𝙞𝙧𝙩𝙮 𝙎𝙤𝙪𝙧𝙘𝙞𝙣𝙜: 𝙃𝙤𝙬 𝙀𝙢𝙗𝙤𝙙𝙞𝙚𝙙 𝙀𝙢𝙞𝙨𝙨𝙞𝙤𝙣𝙨 𝘼𝙡𝙩𝙚𝙧 𝙩𝙝𝙚 𝙀𝙣𝙫𝙞𝙧𝙤𝙣𝙢𝙚𝙣𝙩𝙖𝙡 𝙁𝙤𝙤𝙩𝙥𝙧𝙞𝙣𝙩 𝙤𝙛 𝙀𝙭𝙥𝙤𝙧𝙩𝙚𝙧𝙨"
📄 www.diw.de/de/diw_01.c....
👥 Till Köveker, Philipp Richter and Alexander Schiersch

🧵

Heute geht es um die Abstimmung zur Verschärfung der Gesetze zur Migration. Im Diskurs der letzten Tage werden die Themen Migration und innere Sicherheit eng verknüpft. Der Zusammenhang zw. Migration und Kriminalität ist Gegenstand aktueller Forschung, die aber zu anderen Schlüssen kommt. (1/2)

Thank you @joschkawanner.bsky.social ! I can only second how much I have learned from you- both through our joint paper and in general - and look forward to many more projects together.

Thank you so much @tomasoduso.bsky.social for these kind words and for all your invaluable advice and support in the last years. The supportive and inspiring atmosphere at the Firms and Markets department @diw.de makes it easy to be enthusiastic about research!

I could not agree more. @rsogalla.bsky.social is one of the best PhD students I have ever had the pleasure to supervise. An impressive young scholar with a lot of talent, outstanding skills, incredible productivity, but most of all a deep intrinsic interest in #trade and #climate economics. @diw.de