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Climate change is a defining challenge of our times. This column introduces a special issue of the Journal of Economic Geography on climate change, which provides foundations for well-informed policymaking by addressing two main themes of the economic geography of climate change. First, climate change yields heterogeneous effects across space. Second, a crucial aspect of human
Klaus Desmet, Dávid Krisztián Nagy, Esteban Rossi-Hansberg In discussing trade policy in the context of climate change, some people are quick to argue that trade might have to be restricted. After all, trade involves transportation, and unfortunately, transportation is an important source of carbon emissions. In addition, there is growing support for carbon border adjustments, a tariff on carbon-intensive imports (e.g. Elliot et al. 2010, Mehling et al. 2019, Farrokhi and Lashkaripour 2020, Kortum and Weisbach 2020). Yet, by facilitating locations to switch specialisation, trade may also...
The effects of climate change are heterogenous across space. While some regions will be significantly negatively impacted, others may benefit from warmer temperatures. This column uses an integrated assessment model with rich spatial data that looks at interactions between regions to show how the effects of global warming on production and migration are large, worrying, and