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(In search of) The green premium: transaction level evidence of the sustainability advantage
WORKING PAPER 25 This paper examines whether environmentally sustainable products earn a green premium in international trade and how patent protection shapes this outcome. Using transaction-level export data for Italian firms matched with patent information from 2005–2019, the authors show that unpatented green products face market constraints: higher prices are offset by lower export volumes. In contrast, green products backed by patent protection achieve higher quantities and export values. The findings demonstrate that innovation enables firms to convert environmental attributes into stronger export performance.
Industrial Policy in the era of geopolitical fragmentation
WORKING PAPER 27 Rising geopolitical tensions are reshaping global trade and industrial to advance strategic goals. This working paper examines what these shifts mean for emerging markets. Rather than choosing sides, the authors argue that successful emerging-market strategies lie in selective integration: maintaining openness with peers while deploying targeted, rules-based responses to distortions. The analysis highlights practical “do’s and don’ts” for trade and industrial policy in an era of geopolitical fragmentation
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