{
  "abstract": "Climate policy changes production costs and can reshape the geography of production. We study this spatial channel in a focused model where mobile industrial activity responds to local attractiveness, agglomeration strengthens attractiveness, and carbon policy lowers the profitability of emissions-intensive locations. The model yields an explicit carbon-policy threshold separating spatial instability from stability. When emissions intensity rises with local industrial density, spatial concentration raises aggregate emissions even with unchanged total industrial activity. Embedding these dynamics in a two-jurisdiction policy game creates a wedge between regional and collective incentives: each government values the industrial activity located within its own territory, while aggregate welfare internalizes the effect of policy on economy-wide concentration. With transferable utility, cooperation can select a policy on the stable side of the threshold while the non-cooperative policy lies on the unstable side. A numerical exercise illustrates this regime change. European regional evidence, based on industrial emissions and gross value added at NUTS2 level, documents a positive emissions-activity association and identifies the empirical quantities needed to measure relocation and concentration effects. The analysis links climate cooperation to the spatial organization of production and establishes a benchmark for policy-induced industrial relocation.",
  "abstract_shown": true,
  "affiliations": [],
  "article_type": null,
  "arxiv": "2610.10939",
  "author_total": 1,
  "authors": [
    {
      "name": "Angela Martiradonna"
    }
  ],
  "bibtex": "https://research.draconitic.com/paper/3s7h5q4n0aded.bib",
  "cited_by": 0,
  "doi": "10.48550/arxiv.2610.10939",
  "fulltext_url": null,
  "id": "3s7h5q4n0aded",
  "issns": [],
  "landing_url": "https://arxiv.org/abs/2610.10939",
  "language": null,
  "licence": "LicenseRef-arXiv-nonexclusive-1.0",
  "licence_label": "arXiv licence",
  "licence_source": "article",
  "licence_url": "http://arxiv.org/licenses/nonexclusive-distrib/1.0/",
  "metadata_licence": "CC0-1.0",
  "native_subjects": [
    [
      "arxiv",
      "econ.TH"
    ],
    [
      "arxiv",
      "math.AP"
    ],
    [
      "openalex",
      "2002|Climate Change Policy and Economics"
    ]
  ],
  "openalex": "W7221171094",
  "pdf_url": "https://arxiv.org/pdf/2610.10939",
  "pmcid": null,
  "pmid": null,
  "published": "2026-10-07",
  "publisher": null,
  "ris": "https://research.draconitic.com/paper/3s7h5q4n0aded.ris",
  "sources": [
    {
      "first_seen": "2026-10-30T12:27:58Z",
      "native_id": "2610.10939",
      "source": "arxiv",
      "url": "https://arxiv.org/abs/2610.10939"
    }
  ],
  "subjects": [
    {
      "field": "mathematics",
      "origin": "arxiv:math.AP",
      "subfield": "analysis-pdes"
    }
  ],
  "title": "Climate Cooperation and Spatial Industrial Relocation: Stability, Emissions, and Regional Policy Incentives",
  "title_text": "Climate Cooperation and Spatial Industrial Relocation: Stability, Emissions, and Regional Policy Incentives",
  "type": "preprint",
  "updated_at": "2026-10-30T12:27:58Z",
  "url": "https://research.draconitic.com/paper/3s7h5q4n0aded",
  "venue": "arXiv",
  "versions": []
}