The Role of Trade in Responding to Climate Change and its Policy Implications

This paper analyzes the impact of climate change on trade through changes in productivity, logistics networks, trade costs, and comparative advantage through a literature review, and then examines the role of trade in responding to climate change and examines policy implications. The expansion of trade allows access to key goods and services such as food and health, as well as the technologies necessary to minimize the negative impacts of climate change, reduce the negative impacts of climate change, and respond appropriately to changes in comparative advantage. Each country should implement comprehensive climate change response measures, such as strengthening its logistics networks, diversifying production, suppliers and customers, and investing in long-term human capital. At the same time, it is necessary to help low-income developing countries respond to climate change and enhance the resilience of the world economy to climate change through cooperation between countries in trade and climate change response policies.