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Global warming is a worldwide and protracted phenomenon with heterogeneous local economic effects. We propose a dynamic economic assessment model of the world economy with high spatial resolution to assess its consequences. Our model features several forms of adaptation to local temperature changes, including costly trade and migration, local technological innovations, and local natality rates. We quantify the model at a 1 ∘ × 1 ∘ resolution and estimate damage functions that determine the impact of temperature changes on a region's fundamental productivity and amenities conditional on local temperatures. Welfare losses from global warming are very heterogeneous across locations, with 20% losses in parts of Africa and Latin America but also gains in some northern latitudes. Overall, spatial inequality increases. Uncertainty about average welfare effects is significant but much smaller for relative losses across space. Migration and innovation are shown to be important adaptation mechanisms. We use the model to study the impact of carbon taxes, abatement technologies, and clean energy subsidies. Carbon taxes delay consumption of fossil fuels and help flatten the temperature curve but are much more effective when an abatement technology is forthcoming. [ABSTRACT FROM AUTHOR]

This study examines the roles of environmental strategy and accounting in corporate carbon performance, as measured by the Greenhouse Gas (GHG) Protocol. A novel interaction model is developed based on legitimacy theory and natural‐resource dependence theory to capture the interaction between environmental strategy and accounting. An international sample of 3322 firms from 73 countries is used in the analysis, based on a panel data design for 17 years (2005–2022). The empirical findings reveal an overall reactive role of these environmental initiatives in relation to carbon performance. The marginal effect analysis shows that environmental accounting favourably moderates the effect of environmental strategic functions on carbon performance, indicating that the former facilitates the translation of the latter into practice. Similarly, environmental strategic initiatives improve the impact of environmental accounting information on carbon performance. The main contribution of this study stems from methodologically demonstrating how the synergy between environmental strategic initiatives and environmental information mechanisms can translate into improved carbon performance. This finding has multiple societal, practical and research implications. The interaction effect evidence can be viewed as consistent with recent trends of integrated approaches to thinking and reporting, where interrelated phenomena are integrated into operational and reporting contexts to improve efficiency. This can be of interest to policymakers, investors, corporate managers and providers of assurance services related to carbon performance. [ABSTRACT FROM AUTHOR]

We study the influence of industrial lobbying on national climate policies and the formation of an international environmental agreement if the coalition countries use border carbon adjustments to protect domestic producers. We find that the effects of this political influence crucially depend on the distribution of carbon tax revenues. If these are transferred to the households, lobbying distorts carbon taxes downwards to reduce the tax burden and does not affect coalition sizes. This leads to higher emissions and lower welfare. By contrast, if tax revenues are given back to the firms, lobbies in the outsider countries favor carbon taxes, whereas lobbies in the coalition countries favor carbon subsidies to raise the international commodity price. This reduces the tax difference and the welfare difference between the countries, which reduces the free-rider incentives. Then, lobbying stabilizes the grand coalition and reduces global emissions compared to a "perfect" world without lobbying if the political influence is sufficiently strong. [ABSTRACT FROM AUTHOR]

We analyze a transboundary pollution control problem in a heterogeneous two-country differential game setting in which regulators care for the implications of environmental policies on the competitiveness. We characterize the noncooperative and the cooperative solutions, showing that under both scenarios, in the presence of competitiveness considerations, heterogeneous countries will generally set different carbon taxes. This suggests, while implementing a mitigation policy is necessary to combat climate change, a universally homogeneous policy may not be optimal. Moreover, when countries are symmetric, except for their degree of competitiveness concerns, under noncooperation introduction of such concerns lowers the abatement policies in both countries, however, the self-effect is stronger than the cross-effect. Nevertheless, under cooperation, an increase in country j's competitiveness concerns leads to more stringent policies in country i, while, the self-effect could be either positive or negative. The latter result emphasizes the importance of cooperation to tackle pollution in the presence of competitiveness concerns. [ABSTRACT FROM AUTHOR]

Population growth has two potentially counteracting effects on pollution emissions: (i) more people imply more production and thereby more emissions, and (ii) more people imply a larger research capacity which might reduce the emission intensity of production, depending on the direction of research. This study investigates how to achieve a given climate goal in the presence of these two effects. A growth model featuring both directed technical change and population growth is developed. The model allows for simultaneous research in polluting and non-polluting technologies. Both analytical and numerical results indicate that population growth is a burden on the environment, even when all research efforts are directed toward non-polluting technologies. Thus, research subsidies alone cannot ensure environmental sustainability. Instead, the analysis highlights the importance of carbon taxes for climate change mitigation. [ABSTRACT FROM AUTHOR]

This study employs the dynamic recursive Computable General Equilibrium (CGE) approach to model Australia's economy. This carbon tax policy is designed based on Australia's economy, starting at A$23/tCO2, increasing over time and imposing uniformly on all industries. This study proposes two carbon tax policies and three revenue recycling approaches, and the prices and GDP variations are estimated during 2020 and 2035. This study confirms introducing a carbon tax policy decreases Australia's carbon emissions and reduces real consumption and GDP if it is not accompanied by a revenue recycling policy. But following a revenue-neutral policy and redirecting the carbon tax revenue into the economy through reducing income taxes and investing in research and development (R&D) projects leads to economic growth. This study confirms the implementation of a carbon tax associated with a suitable revenue recycling approach benefits Australia both economically and environmentally. [ABSTRACT FROM AUTHOR]