On the Spatial Economic Impact of Global Warming
AbstractWe propose a dynamic spatial theory to analyze the geographic impact of climate change. Agricultural and manufacturing firms locate on a hemisphere. Trade across locations is costly, firms innovate, and technology diffuses over space. Energy used in production leads to emissions that contribute to the global stock of carbon in the atmosphere, which affects temperature. The rise in temperature differs across latitudes and sectors. We calibrate the model to analyze how climate change affects the spatial distribution of economic activity, trade, migration, growth, and welfare. We assess quantitatively the impact of migration and trade restrictions, energy taxes, and innovation subsidies.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 18546.
Date of creation: Nov 2012
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- E00 - Macroeconomics and Monetary Economics - - General - - - General
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- R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
This paper has been announced in the following NEP Reports:
- NEP-AGR-2012-12-06 (Agricultural Economics)
- NEP-ALL-2012-12-06 (All new papers)
- NEP-ENV-2012-12-06 (Environmental Economics)
- NEP-RES-2012-12-06 (Resource Economics)
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