@article{KalkuhlWenz2020,
  author    = {Kalkuhl, Matthias and Wenz, Leonie},
  title     = {The impact of climate conditions on economic production},
  series = {Journal of Environmental Economics and Management},
  volume    = {103},
  journal   = {Journal of Environmental Economics and Management},
  publisher = {Elsevier},
  address   = {San Diego},
  issn      = {0095-0696},
  doi       = {10.1016/j.jeem.2020.102360},
  pages     = {20},
  year      = {2020},
  abstract  = {We present a novel data set of subnational economic output, Gross Regional Product (GRP), for more than 1500 regions in 77 countries that allows us to empirically estimate historic climate impacts at different time scales. Employing annual panel models, long-difference regressions and cross-sectional regressions, we identify effects on productivity levels and productivity growth. We do not find evidence for permanent growth rate impacts but we find robust evidence that temperature affects productivity levels considerably. An increase in global mean surface temperature by about 3.5°C until the end of the century would reduce global output by 7-14\% in 2100, with even higher damages in tropical and poor regions. Updating the DICE damage function with our estimates suggests that the social cost of carbon from temperature-induced productivity losses is on the order of 73-142\$/tCO2 in 2020, rising to 92-181\$/tCO2 in 2030. These numbers exclude non-market damages and damages from extreme weather events or sea-level rise.},
  language  = {en}
}
@article{BorckPflueger2019,
  author    = {Borck, Rainald and Pfl{\"u}ger, Michael},
  title     = {Green cities? Urbanization, trade, and the environment},
  series = {Journal of regional science},
  volume    = {59},
  journal   = {Journal of regional science},
  number    = {4},
  publisher = {Wiley},
  address   = {Hoboken},
  issn      = {0022-4146},
  doi       = {10.1111/jors.12423},
  pages     = {743 -- 766},
  year      = {2019},
  abstract  = {Is urbanization good for the environment? This paper establishes a simple core-periphery model with monocentric cities, which comprises key forces that shape the structure and interrelation of cities to study the impact of the urban evolution on the environment. We focus on global warming and the potential of unfettered market forces to economize on emissions. The model parameters are chosen to match the dichotomy between average "large" and "small" cities in the urban geography of the United States, and the sectoral greenhouse gas emissions recorded for the United States. Based on numerical analyzes we find that a forced switch to a system with equally sized cities reduces total emissions. Second, any city driver which pronounces the asymmetry between the core and the periphery drives up emissions in the total city system, too, and the endogenous adjustment of the urban system accounts for the bulk of the change in emissions. Third, none of the city drivers gives rise to an urban environmental Kuznets curve according to our numerical simulations. Finally, the welfare-maximizing allocation tends to involve dispersion of cities and the more so the higher is the marginal damage from pollution.},
  language  = {en}
}