The Economics of Climate Change

The Economics of Climate Change examines how climate change affects economies and resource allocation. It explores costs from extreme weather, rising sea levels, and health impacts, as well as the economic benefits of reducing greenhouse gas emissions. Economists analyze market mechanisms, like carbon pricing, to incentivize businesses and consumers to lower their carbon footprint. This field emphasizes the need for sustainable practices that balance economic growth with environmental stewardship, advocating for investments in renewable energy, efficient technologies, and policies that support both climate resilience and economic development for a sustainable future.