Wednesday, March 11, 2026 12:30 - 14:00

This event is both online and in person.

SAL 1.04, 1st Floor Conference Room, Sir Arthur Lewis Building, LSE, 32 Lincoln's Inn Fields, London WC2A 3PH

Online participants are welcome:
Please sign up to our mailinglist (seminar_applications). to receive event updates and a link to the seminar online.

About this event

In a globalized economy, a country?s domestic policies can generate global spillovers when it affects the products designed and manufactured by multinational firms. Standard economic analyses typically abstract from this channel, potentially leading to an understatement of policy impacts. We study this phenomenon in the context of environmental regulation in the automobile market. We provide empirical evidence that a fuel economy subsidy in Japan led to significant improvements in the fuel economy of vehicles sold in the U.S., thereby generating additional environmental benefits. We then develop a model of multinational automobile markets that features cross-market cost complementarity to model global spillovers. Using the model estimated for Japan and the U.S., we conduct counterfactual policy simulations to quantify the environmental benefits and welfare effects of policy in one country that causes global spillovers. Accounting for these spillovers is substantive in our case: a majority of greenhouse gas emissions reductions from the Japanese policy occurred in the United States.

Participants are expected to adhere to the CEP Events Code of Conduct.

Directions

This event will take place in SAL 1.04, 1st Floor Conference Room, Sir Arthur Lewis Building, LSE, 32 Lincoln's Inn Fields, London WC2A 3PH.

Online participants are welcome:
Please sign up to our mailinglist (seminar_applications). to receive event updates and a link to the seminar online.

The building is labelled SAL on the LSE campus map. You can also find us on Google Maps. For further information, go to contact us.

This series is part of the CEP's Labour Markets programme.