Cruz, José-Luis; Rossi-Hansberg, Esteban - National Bureau of Economic Research - 2022
We study local carbon policy to address the consequences of climate change. Standard analysis suggests that the social … cost of carbon determines optimal carbon policy. We start by using the spatial integrated assessment model in Cruz and … Rossi-Hansberg (2021) to measure the local social monetary cost of CO2 emissions: the Local Social Cost of Carbon (LSCC …