Lucas Bretschger, ETH Zürich. “The Great Divide: Environmental Migration as a Response to Climate Change and Policy in North and South”

Department seminar. Lucas Bretschger is a professor at Department of Management, Technology, and Economics at ETH Zürich. He will present the paper: “The Great Divide: Environmental Migration as a Response to Climate Change and Policy in North and South”.

A photograph of Lucas Bretschger.

Lucas Bretschger.
Source: https://sccer-crest.ch

Abstract:

We study environmental migration in an endogenously growing world economy divided into developed and less developed countries. Climate change has a regional impact; it affects incomes and induces international migration. We derive analytical solutions for the migration stock in market equilibrium and in social optimum and calculate its effects on income and development. We find that international migration raises welfare at a global level and at the aggregate level in North. Migration augments average welfare in South but reduces welfare per capita in North. When returns to knowledge capital are decreasing, steady migration can support a constant consumption growth rate at the world level. Climate policy implemented by North reduces migration and improves global welfare. In the quantitative part we illustrate long-run development under different parameter constellations.

Link to the paper [PDF].

Published Mar. 18, 2022 1:11 PM - Last modified May 4, 2022 10:28 AM