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On the Spatial Economic Impact of Global Warming / Klaus Desmet, Esteban Rossi-Hansberg.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Desmet, Klaus.
Contributor:
National Bureau of Economic Research.
Rossi-Hansberg, Esteban.
Series:
Working Paper Series (National Bureau of Economic Research) no. w18546.
NBER working paper series no. w18546
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2012.
Summary:
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.
Notes:
Print version record
November 2012.

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