On the spatial economic impact of global warming

Klaus Desmet and Esteban Rossi-Hansberg

Journal of Urban Economics, 2015, vol. 88, issue C, 16-37

Abstract: We propose a dynamic spatial theory to analyze the geographic impact of climate change. Agricultural and manufacturing firms locate on a hemisphere. Trade is costly, firms innovate, and technology diffuses over space. Emissions from energy used in production contribute to the atmospheric stock of carbon, which increases temperature. Warming differs across latitudes and its effect on productivity varies across 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.

Keywords: Space; Climate change; Geography; Migration; Trade; Innovation; Growth; Mobility frictions (search for similar items in EconPapers)
JEL-codes: E00 F10 F18 Q56 R00 R11 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (118)

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Related works:
Working Paper: On the Spatial Economic Impact of Global Warming (2013)
Working Paper: On the Spatial Economic Impact of Global Warming (2012)
Working Paper: On the Spatial Economic Impact of Global Warming (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:juecon:v:88:y:2015:i:c:p:16-37

DOI: 10.1016/j.jue.2015.04.004

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