Spatial Climate-Economic Models in the Design of Optimal Climate Policies across Locations
We couple a one-dimensional energy balance climate model with heat transportation across latitudes, with an economic growth model. We derive temperature and damage distributions across locations and optimal taxes on fossil fuels which, in contrast to zero-dimensional Integrated Assessment Models, account for cross latitude externalities. We analyse the impact of welfare weights on the spatial structure of optimal carbon taxes and identify conditions under which these taxes are spatially nonhomogeneous and are lower in latitudes with relatively lower per capita income populations. We show the way that heat transportation affects local economic variables and taxes, and locate sufficient conditions for optimal mitigation policies to have rapid ramp-up initially and then decrease over time.
(This abstract was borrowed from another version of this item.)
|Date of creation:|
|Contact details of provider:|| Postal: 76, Patission Street, Athens 104 34|
Phone: (+301) 8214021
Fax: (301) 8214021
Web page: http://deos.aueb.gr/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Martin L. Weitzman, 2009.
"On Modeling and Interpreting the Economics of Catastrophic Climate Change,"
The Review of Economics and Statistics,
MIT Press, vol. 91(1), pages 1-19, February.
- Weitzman, Martin L., 2009. "On Modeling and Interpreting the Economics of Catastrophic Climate Change," Scholarly Articles 3693423, Harvard University Department of Economics.
- Kenneth L. Judd, 1998. "Numerical Methods in Economics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262100711, March.
- Chichilnisky, Graciela & Heal, Geoffrey, 1994.
"Who should abate carbon emissions? : An international viewpoint,"
Elsevier, vol. 44(4), pages 443-449, April.
- Graciela Chichilnisky & Geoffrey Heal, 1993. "Who Should Abate Carbon Emissions? An International Viewpoint," NBER Working Papers 4425, National Bureau of Economic Research, Inc.
- Hassler, John & Krusell, Per, 2012.
"Economics and Climate Change: Integrated Assessment in a Multi-Region World,"
CEPR Discussion Papers
8771, C.E.P.R. Discussion Papers.
- John Hassler & Per Krusell, 2012. "Economics And Climate Change: Integrated Assessment In A Multi-Region World," Journal of the European Economic Association, European Economic Association, vol. 10(5), pages 974-1000, October.
- John Hassler & Per Krusell, 2012. "Economics and Climate Change: Integrated Assessment in a Multi-Region World," NBER Working Papers 17757, National Bureau of Economic Research, Inc.
- Keen, Michael & Kotsogiannis, Christos, 2014.
"Coordinating climate and trade policies: Pareto efficiency and the role of border tax adjustments,"
Journal of International Economics,
Elsevier, vol. 94(1), pages 119-128.
- Michael Keen & Christos Kotsogiannis, 2012. "Coordinating Climate and Trade Policies; Pareto Efficiency and the Role of Border Tax Adjustments," IMF Working Papers 12/289, International Monetary Fund.
- Michael Keen & Christos Kotsogiannis, 2011. "Coordinating Climate and Trade Policies: Pareto Efficiency and the Role of Border Tax Adjustments," CESifo Working Paper Series 3494, CESifo Group Munich.
- Michael Keen & Christos Kotsogiannis, 2011. "Coordinating Climate and Trade Policies: Pareto Efficiency and the Role of Border Tax Adjustments," Discussion Papers 1106, Exeter University, Department of Economics.
- Desmet, Klaus & Rossi-Hansberg, Esteban, 2015.
"On the spatial economic impact of global warming,"
Journal of Urban Economics,
Elsevier, vol. 88(C), pages 16-37.
- Klaus DESMET & Esteban ROSSI-HANSBERG, 2013. "On the Spatial Economic Impact of Global Warming," Discussion papers 13057, Research Institute of Economy, Trade and Industry (RIETI).
- Desmet, Klaus & Rossi-Hansberg, Esteban, 2012. "On the Spatial Economic Impact of Global Warming," CEPR Discussion Papers 9220, C.E.P.R. Discussion Papers.
- Klaus Desmet & Esteban Rossi-Hansberg, 2012. "On the Spatial Economic Impact of Global Warming," NBER Working Papers 18546, National Bureau of Economic Research, Inc.
- Melissa Dell & Benjamin F. Jones & Benjamin A. Olken, 2012. "Temperature Shocks and Economic Growth: Evidence from the Last Half Century," American Economic Journal: Macroeconomics, American Economic Association, vol. 4(3), pages 66-95, July.
- Sir Nicholas Stern, 2006. "What is the Economics of Climate Change?," World Economics, World Economics, Economic & Financial Publishing, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 7(2), pages 1-10, April.
- Joshua Elliott & Ian Foster & Samuel Kortum & Todd Munson & Fernando Pérez Cervantes & David Weisbach, 2010. "Trade and Carbon Taxes," American Economic Review, American Economic Association, vol. 100(2), pages 465-69, May.
- Golosov, Mikhail & Hassler, John & Krusell, Per & Tsyvinski, Aleh, 2011.
"Optimal taxes on fossil fuel in general equilibrium,"
CEPR Discussion Papers
8527, C.E.P.R. Discussion Papers.
- Mikhail Golosov & John Hassler & Per Krusell & Aleh Tsyvinski, 2014. "Optimal Taxes on Fossil Fuel in General Equilibrium," Econometrica, Econometric Society, vol. 82(1), pages 41-88, 01.
- Mikhail Golosov & John Hassler & Per Krusell & Aleh Tsyvinski, 2011. "Optimal Taxes on Fossil Fuel in General Equilibrium," NBER Working Papers 17348, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:aue:wpaper:1224. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekaterini Glynou)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.