- Consulting Editors
- List of Contributors
- The Macroeconomics of Global Warming
- Improving Climate Projections to Better Inform Climate Risk Management
- Energy Balance Climate Models, Damage Reservoirs, and The Time Profile of Climate Change Policy
- Economics of Environmental Regime Shifts
- Policy Scenarios in a Model of Optimal Economic Growth and Climate Change
- Adaptive Model-Predictive Climate Policies in a Multicountry Setting
- Prospects of Tools from Differential Games in the Study of Macroeconomics of Climate Change
- Fairness in Climate Negotiations: A Meta-Game Analysis Based on Community Integrated Assessment
- Climate Change and Second-Best Abatement in a Multiregion World with Endogenous Growth
- Global Warming and R&D-Based Growth in a Trade Model between Environmentally Sensitive and Environmentally Neglectful Countries
- Climate Change and Intergenerational Well-Being
- The Atmosphere as a Global Commons
- The Social Cost of Carbon
- Climate-Friendly Technological Change for Developing Countries
- Renewable Energy: Models, Implications, and Prospects
- Emission Trading Systems and Technological Innovation: A Random Matching Model
- The Reality of Nuclear Power: The Fukushima Experience and Its Impact
- Forecast-Based Pricing of Weather Derivatives
- Employment and Output Effects of Climate Policies
- Macroeconomic Effects of Renewable Energy and Energy Efficiency Policies with a Focus on Germany
- Stabilization of Earth’s Climate in the 21st Century by the Stabilization of Per Capita Consumption
- Does the Kyoto Protocol Intensify Carbon Leakage to China?
- Climate Thresholds, Weather Extremes, and Catastrophic Losses
- Climate Impacts on Agriculture: A Challenge to Complacency?
- The Legal Framework of Global Environment Governance on Climate Change: A Critical Survey
- Environment and Development Challenges: The Imperative of a Carbon Fee and Dividend
- The Need for Sustainable Development and a Carbon Market: Avoiding Extinction
- Name Index
- Subject Index
Abstract and Keywords
The chapter analyzes a bipolar world in which one region disregards global warming, while the other acknowledges the two-sided link between production and the emissions and concentration of pollutants in the atmosphere. Productive activities are negatively affected by global warming, provoke emissions, and make use of intermediate inputs and forest products as inputs. The environmentally unconcerned forest region trades forest products in exchange for technology developed in the environmentally concerned technology leading region. Trade is the transmission channel for economic growth. Trade also serves to transmit the willingness to reduce emissions from the environmentally concerned region to the unconcerned region, so turning around the carbon leakage problem. Furthermore, a global reduction in emissions does not necessarily lead to a reduction in the speed of growth.
Francisco Cabo, Faculty of Economics and Business, Department of Applied Economics (Mathematics), Universidad de Valladolid, Spain.
Guiomar Martín-Herrán, Faculty of Economics and Business, Department of Applied Economics (Mathematics), Universidad de Valladolid, Spain.
María Pilar Martínez-García, Associate Professor, Faculty of Economics and Business, Universidad de Murcia, Spain.