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Bao, Alex, Bontems, Philippe
, Cardebat, Jean-Marie and Chiappini, Raphaël
(2024)
Exporters’ behaviour in the face of climate volatility.
TSE Working Paper, n. 24-1552, Toulouse
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Abstract
This study examines how exporters make export decisions when faced with production and demand shocks. Using a unique dataset of French wine shipments from 2001 to 2020 across 134 Protected Denomination of Origin (PDO) regions, and daily weather data from M´et´eo-France, we employ gravity estimations to show that extreme weather affects both trade intensive and extensive margins, while favorable weather boosts them. A heterogeneity analysis reveals that exports to core markets are less sensitive than peripheral markets to extreme weather, indicating market prioritization by exporters. Our theoretical analysis explains how climate-induced production shock volatility shapes export behavior, leading firms to reallocate resources to most attractive markets and streamline their destination markets portfolios by exiting less favorable ones.
| Item Type: | Monograph (Working Paper) |
|---|---|
| Language: | English |
| Date: | July 2024 |
| Place of Publication: | Toulouse |
| Uncontrolled Keywords: | Climate Change, Cost shocks, Demand shocks, Gravity model, Heterogeneous Firms. |
| JEL Classification: | F12 - Models of Trade with Imperfect Competition and Scale Economies F18 - Trade and Environment Q18 - Agricultural Policy; Food Policy Q56 - Environment and Development; Environment and Trade; Sustainability; Environmental Accounting; Environmental Equity |
| Subjects: | B- ECONOMIE ET FINANCE |
| Divisions: | TSE-R (Toulouse) |
| Institution: | Université Toulouse Capitole |
| Site: | UT1 |
| Date Deposited: | 12 Jul 2024 11:14 |
| Last Modified: | 12 Jul 2024 11:14 |
| OAI Identifier: | oai:tse-fr.eu:129521 |
| URI: | https://publications.ut-capitole.fr/id/eprint/49544 |
