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Warming with Borders: Forced Climate Migration and Carbon Pricing

Author

Listed:
  • Maria Alsina-Pujols

    (Center of Economic Research, ETH Zurich, Zurichbergstrasse 18, 8092 Zurich, Switzerland)

Abstract

As climate changes and natural disasters intensify, the threat of human displacement increases. This paper studies carbon taxation in the presence of international climate displacement. After providing evidence on the migration response to disasters, forced climate migration is introduced into a quantitative climate-macroeconomic model to theoretically characterize the global and local social cost of carbons -SCCs, equivalently, optimal carbon taxes. These change substantially when this type of migration is considered. A North-South calibration reveals that, while migration increases the local SCC in host regions -more so if political conflict is considered—the global and origin region’s SCCs remain largely unaffected.

Suggested Citation

  • Maria Alsina-Pujols, 2025. "Warming with Borders: Forced Climate Migration and Carbon Pricing," CER-ETH Economics working paper series 25/397, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
    • Handle: RePEc:eth:wpswif:25-397
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    File URL: https://ethz.ch/content/dam/ethz/special-interest/mtec/cer-eth/cer-eth-dam/documents/working-papers/wp-25-397.pdf
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    More about this item

    Keywords

    Climate change; social cost of carbon; forced climate migration; optimal and unilateral policy;
    All these keywords.

    JEL classification:

    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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