Climate Change's Hidden Economic Toll: How Rising Temperatures Are Driving Up Global Trade Costs

New research reveals that rising global temperatures are significantly increasing the costs of international trade, a factor largely overlooked in climate impact assessments. This study combines historical trade and weather data to show how climate change, particularly through its effects on sea ports, makes shipping goods more expensive. Discover how ignoring this trade cost channel leads to a substantial underestimation of the true economic welfare impact of a warming planet.