On the Spatial Economic Impact of Global Warming

Klaus Desmet and Esteban Rossi-Hansberg

No 18546, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We propose a dynamic spatial theory to analyze the geographic impact of climate change. Agricultural and manufacturing firms locate on a hemisphere. Trade across locations is costly, firms innovate, and technology diffuses over space. Energy used in production leads to emissions that contribute to the global stock of carbon in the atmosphere, which affects temperature. The rise in temperature differs across latitudes and 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.

JEL-codes: E00 F10 R00 (search for similar items in EconPapers)
Date: 2012-11
New Economics Papers: this item is included in nep-agr, nep-env and nep-res
Note: EEE EFG ITI
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

Published as Journal of Urban Economics Volume 88, July 2015, Pages 16–37 Cover image On the spatial economic impact of global warming ☆ Klaus Desmeta, , , Esteban Rossi-Hansbergb,

Downloads: (external link)
http://www.nber.org/papers/w18546.pdf (application/pdf)

Related works:
Journal Article: On the spatial economic impact of global warming (2015)
Working Paper: On the Spatial Economic Impact of Global Warming (2013)
Working Paper: On the Spatial Economic Impact of Global Warming (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:nbr:nberwo:18546

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w18546

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().