Warming with Borders: Forced Climate Migration and Carbon Pricing

Maria Alsina-Pujols
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Maria Alsina-Pujols: Center of Economic Research, ETH Zurich, Zurichbergstrasse 18, 8092 Zurich, Switzerland

No 25/397, CER-ETH Economics working paper series from CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich

Abstract: As climate changes and natural disasters intensify, the threat of human displacement increases. This paper studies carbon taxation in the presence of international climate displacement. After providing evidence on the migration response to disasters, forced climate migration is introduced into a quantitative climate-macroeconomic model to theoretically characterize the global and local social cost of carbons -SCCs, equivalently, optimal carbon taxes. These change substantially when this type of migration is considered. A North-South calibration reveals that, while migration increases the local SCC in host regions -more so if political conflict is considered—the global and origin region’s SCCs remain largely unaffected.

Keywords: Climate change; social cost of carbon; forced climate migration; optimal and unilateral policy (search for similar items in EconPapers)
JEL-codes: E60 F22 O44 Q54 (search for similar items in EconPapers)
Pages: 70 pages
Date: 2025-01
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Persistent link: https://EconPapers.repec.org/RePEc:eth:wpswif:25-397

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