On the Geographic Implications of Carbon Taxes

Bruno Conte, Klaus Desmet and Esteban Rossi-Hansberg

No 1464, Working Papers from Barcelona School of Economics

Abstract: Using a multisector dynamic spatial integrated assessment model (S-IAM), we argue that a carbon tax introduced by the European Union (EU) and rebated locally can, if not too large, increase the size of Europe’s economy by concentrating economic activity in its high-productivity non-agricultural core and by incentivizing immigration to the EU. The resulting change in the spatial distribution of economic activity improves global efficiency and welfare. A carbon tax introduced by the US generates similar effects. This stands in sharp contrast with standard models that ignore trade and migration in a world shaped by economic geography forces.

Keywords: economic geography; climate change; carbon taxes (search for similar items in EconPapers)
JEL-codes: H23 Q54 R12 (search for similar items in EconPapers)
Date: 2024-10
New Economics Papers: this item is included in nep-ene, nep-env, nep-geo, nep-int, nep-pub, nep-res and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://bse.eu/sites/default/files/working_paper_pdfs/1464_1.pdf (application/pdf)

Related works:
Working Paper: On the Geographic Implications of Carbon Taxes (2022)
Working Paper: On the Geographic Implications of Carbon Taxes (2022)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bge:wpaper:1464

Access Statistics for this paper

More papers in Working Papers from Barcelona School of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Bruno Guallar ().