@article{Brock:121721,
      recid = {121721},
      author = {Brock, William A. and Engstrom, Gustav and Xepapadeas,  Anastasios},
      title = {Energy Balance Climate Models and the Spatial Structure of  Optimal Mitigation Policies},
      address = {2012-02},
      number = {824-2016-54681},
      series = {CCSD},
      pages = {44},
      year = {2012},
      abstract = {We develop a one-dimensional energy balance climate model  with heat transportation across locations. We introduce the  concept of potential world GDP at time t, and we introduce,  through the temperature function, spatial characteristics  into the damage function which make damages latitude  dependent. We solve the social planner’s problem and  characterize the competitive equilibrium. We define optimal  taxes on fossil fuels and profit taxes on firms that  extract fossil fuels. Our results suggest that if the  implementation of international transfers 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 differentiation of optimal taxes depend  on heat transportation. We also locate sufficient  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.},
      url = {http://ageconsearch.umn.edu/record/121721},
      doi = {https://doi.org/10.22004/ag.econ.121721},
}