| Authors |
Brock, W., Engstrom, G. and Xepapadeas, A. |
| Title |
Energy Balance Climate Models and the Spatial Structure of Optimal Mitigation Policies |
| Abstract |
We develop a one-dimemsional energy balance climate model with
heat transportation across locations. We introduce the concept of po-
tential world GDP at time t, and we introduce, through the temper-
ature function, spatial characteristics into the damage function which
make damages latitude dependent. We solve the social planner��s prob-
lem and characterize the competitive equilibrium. We de��ne optimal
taxes on fossil fuels and pro��t taxes on ��rms that extract fossil fuels.
Our results suggest that if the implementation of international trans-
fers across latitudes is not possible, then optimal taxes are spatially
non homogeneous and tend to be lower at the poor latitudes. The
degree of spatial di�¤erentiation of optimal taxes depend on heat trans-
portation. We also locate su�¢ cient conditions for optimal mitigation
policies to have rapid ramp-up initially and then decrease over time.
By employing the properties of the spatial model and approximating
solutions, we show how to study the impact of thermal transport across
latitudes on welfare inequality. |
| Creation Date |
2012-01-22 |
| Keywords |
Energy Balance Climate Models, Heat Di¤usion, Tem- perature Distribution, Spatial Optimal Taxes |
| Classification JEL |
Q54, Q58 |
| File |
BEX-January_2012.pdf (499692 bytes) |
| File-Function |
First version |
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Copyright © 2009 [D.I.E.S.S. A.U.E.B.]. All rights reserved.
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