Spatial Climate-Economic Models in the Design of Optimal Climate Policies across Locations

William A. Brock, Gustav Engstrom and Anastasios Xepapadeas

No 139485, Climate Change and Sustainable Development from Fondazione Eni Enrico Mattei (FEEM)

Abstract: 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.

Keywords: Environmental; Economics; and; Policy (search for similar items in EconPapers)
Pages: 74
Date: 2012-10
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://ageconsearch.umn.edu/record/139485/files/NDL2012-074.pdf (application/pdf)

Related works:
Journal Article: Spatial climate-economic models in the design of optimal climate policies across locations (2014)
Working Paper: Spatial Climate-Economic Models in the Design of Optimal Climate Policies across Locations (2012)
Working Paper: Spatial Climate-Economic Models in the Design of Optimal Climate Policies Across Locations (2012)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:feemcl:139485

DOI: 10.22004/ag.econ.139485

Access Statistics for this paper

More papers in Climate Change and Sustainable Development from Fondazione Eni Enrico Mattei (FEEM) Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().