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

dc.creator	Brock, William A.
dc.creator	Engstrom, Gustav
dc.creator	Xepapadeas, Anastasios
dc.date	2017-04-01T14:03:21Z
dc.date.accessioned	2026-07-09T06:42:25Z
dc.description	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.
dc.identifier	doi:10.22004/ag.econ.139485
dc.identifier	https://ageconsearch.umn.edu/record/139485/files/NDL2012-074.pdf
dc.identifier	http://ageconsearch.umn.edu/record/139485
dc.identifier.uri	http://hdl.handle.net/123456789/579842
dc.language	eng
dc.publisher
dc.source	http://ageconsearch.umn.edu/record/139485
dc.title	Spatial Climate-Economic Models in the Design of Optimal Climate Policies across Locations
dc.type	Text

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