Journal
JOURNAL OF URBAN ECONOMICS
Volume 88, Issue -, Pages 16-37Publisher
ACADEMIC PRESS INC ELSEVIER SCIENCE
DOI: 10.1016/j.jue.2015.04.004
Keywords
Space; Climate change; Geography; Migration; Trade; Innovation; Growth; Mobility frictions
Categories
Funding
- Spanish Ministry of Science and Innovation [ECO2011-27014]
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\ We propose a dynamic spatial theory to analyze the geographic impact of climate change. Agricultural and manufacturing firms locate on a hemisphere. Trade is costly, firms innovate, and technology diffuses over space. Emissions from energy used in production contribute to the atmospheric stock of carbon, which increases temperature. Warming differs across latitudes and its effect on productivity varies across 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. (C) 2015 Elsevier Inc. All rights reserved.
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