Anthropogenic climate change, abatement and economic growth in a multi-region world

This paper studies the effects of global warming in a descriptive model of endogenous growth with multiple regions. It is assumed that deviations from the pre-industrial greenhouse gas concentration, which implies a change in the global surface temperature, negatively affect aggregate output and the marginal product of capital. The paper derives optimal abatement ratios in the non-cooperative world and for the cooperative case assuming that the growth rate is an endogenous variable. Further, the cooperative situation is compared to the outcome resulting when abatement shares are set such that marginal damages in each regions are equal.