A Guide to Macroeconomics and Climate Change

This paper analyzes the literature that links macroeconomics and climate change. We organize our paper into three categories: (i) loss and damage, which assesses long-run economic costs and non-market impacts from climate change; (ii) mitigation and the energy transition, which evaluates the macroeconomic consequences of shifting away from fossil fuels toward renewable energy; and (iii) adaptation, which explores the economic adjustments necessary to manage heat stress, more frequent severe weather events and rising seas. We discuss macroeconomic frameworks that incorporate these forces as well as empirical estimates that guide their calibration. We suggest areas in which macroeconomic research on climate is needed.