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Climate Change and Environmentally Induced Migration Across Regions: Cooperative and Non-cooperative Solutions

Author

Listed:
  • E. V. Petracou

    (University of the Aegean)

  • A. Xepapadeas

    (Athens University of Economics and Business)

  • A. N. Yannacopoulos

    (Athens University of Economics and Business)

Abstract

We propose a two region economic model that may contribute towards the understanding of the relationship between economic and environmental factors as drivers of international migration. The model takes into account optimal emissions and consumption decisions for the two regions, as well as their effects on global temperature and production in each region. Migration is considered as a dynamic phenomenon, driven by a combination of economic and environmental (e.g., climate change) factors, while at the same time the contribution of migrant labour in each region’s production is taken into account. Dynamic optimality conditions are derived for the non-cooperative and the cooperative case, and the optimal solution paths and policies are calculated numerically for indicative cases choosing realistic parameter values. Our results describe the emergence of international migration as a result of a combination of economic and environmental factors, and models the evolution of global temperature as a result of the various targets imposed by international agreements.

Suggested Citation

  • E. V. Petracou & A. Xepapadeas & A. N. Yannacopoulos, 2017. "Climate Change and Environmentally Induced Migration Across Regions: Cooperative and Non-cooperative Solutions," Homo Oeconomicus: Journal of Behavioral and Institutional Economics, Springer, vol. 34(2), pages 137-164, November.
    • Handle: RePEc:spr:homoec:v:34:y:2017:i:2:d:10.1007_s41412-017-0038-3
    DOI: 10.1007/s41412-017-0038-3
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    Cited by:

    1. Peter Nderitu GITHAIGA, 2019. "Foreign Remittances, Private Sector Investment and Banking Sector Development," Journal of Economics and Financial Analysis, Tripal Publishing House, vol. 3(2), pages 85-112.

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    More about this item

    Keywords

    Migration; Climate change; Differential games;
    All these keywords.

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games

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