Grantham Seminar | Climate Change Around the World
Per Krusell, Professor of Economics at Stockholm University and Visiting Professor in the Department of Economics at the London School of Economics, will be the speaker for this seminar.
In this seminar Per presents his work with Anthony A. Smith, Jr. (Yale) in which a global model of economy-climate interactions featuring a high degree of geographic resolution: 1-by-1 degree regions on the map. The model also extends Nordhaus’s DICE and RICE models to an explicit dynamic, stochastic general equilibrium setting. He then uses the model as a laboratory to quantify the distributional effects of climate change and climate policy. Per also uses the model to analyze the effects of a subset of regions imposing a carbon tax (or a quantity restriction on emissions): what happens to global emissions, and which regions gain and which lose, and how much? In short, it is found that the distributional effects swamp the average effects.