Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/73019
Authors: 
Brock, William A.
Engström, Gustav
Xepapadeas, Anastasios
Year of Publication: 
2012
Series/Report no.: 
Nota di Lavoro, Fondazione Eni Enrico Mattei 74.2012
Abstract: 
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.
Subjects: 
One-dimensional Energy Balance Model
Heat Transport
Latitudes
Temperature Distribution
Damage Distribution
Social Planner
Competitive Equilibrium
Local Welfare Weights
Optimal Taxes
JEL: 
Q54
Q58
R11
Document Type: 
Working Paper

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