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

E. V. Petracou (), Anastasios Xepapadeas () and A. N. Yannacopoulos ()
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E. V. Petracou: University of the Aegean
A. N. Yannacopoulos: Athens University of Economics and Business

Homo Oeconomicus: Journal of Behavioral and Institutional Economics, 2017, vol. 34, issue 2, 137-164

Abstract: 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.

Keywords: Migration; Climate change; Differential games (search for similar items in EconPapers)
JEL-codes: J61 Q54 C73 (search for similar items in EconPapers)
Date: 2017
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Handle: RePEc:spr:homoec:v:34:y:2017:i:2:d:10.1007_s41412-017-0038-3