Integration of Climate Change into Economic Theory: Reviewing the Global Process

Abstract

With climate change appearing on the horizon of economic theory and analytical research, it becomes imperative that the links are traced to the origin of the connection between the economics and climate change. Climate change traditionally, is a subject for meteorologists, ecologist and marine biologists. When economist and financial experts, start debating climate change, it means that the subject matter now includes costs, income distribution and factors of production. Energy resource and fossil fuels are the bases of this discussion due to the links with CO2 emission, other Green House Gases (GHG) emissions and the abatement costs of emissions.

Keywords: Economics of Climate Change, Climate Change Economics, Natural Resource Economics, Stern Review, Green Climate Fund, CEM

JEL Classification: Q00, Q50, Q54, Q540