Climate and Trade Policy for Risk Management: The Need for Geopolitical Analytical Frameworks for Supply Chain and Energy System Modeling
摘要
This review contextualizes climate and trade policy and the risks it seeks to mitigate for energy system and supply chain researchers in an era of rising geopolitical tensions by compiling information from various disciplines including international trade, macroeconomics, and energy and carbon modeling.
Recent findingsLiterature has mostly examined the interaction between climate and trade strategies; however, geopolitics has introduced the need for studies that investigate the effects of policies that aim to address both climate and trade concurrently. Yet, recent studies highlight that there are no analytical frameworks to do so, and energy researchers will need to develop one in order to incorporate geopolitics into energy system planning.
SummaryThe literature showed that there will be tradeoffs to any type of trade barrier and nations will have to balance economic, innovation, and climate risks. This review aims to guide and encourage energy researchers to develop the analytical frameworks needed to incorporate climate and trade policy and the associated risks into their models.