Economic Geography and Weitzman's PBS Discussion
Greg Mankiw's blog nudged me to read Marty Weitzman's PBS presentation. Marty's work is fascinating but note that there is no spatial component to his work. He never discusses economic geography. In particular, he implicitly assumes that catastrophic climate change equally impacts every inch of the globe. Shocks always create "winners" and "losers" and comparative advantage always exists. The whole world (7 billion people) could live in a geographic area the size of Texas. We are always building and rebuilding our cities. We continue to use international markets to produce and trade food products. We continue to invent new storage technologies that allow us to insure against climate shocks. Marty underestimates capitalism's ability to step up to provide solutions to anticipated challenges. Spatial competition and urban growth is key adaptation strategy. This is the key reason I wrote Climatopolis. I also suggest that you papers by Desmet and Rossi-Hansberg, Pindyck, and Costello et. al.