EIEE Webinar – Seminar

Title: On the Geographic Implications of Carbon Taxes

Speaker: Bruno Conte, Assistant Professor of Economics (Universitat Pompeu Fabra)

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.

 

This project is part of the SPEED Marie Sklodowska-Curie grant agreement No 101146979.

 

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