Integrating climate and environmental sustainability into macro-frameworks


Please consider the following questions for this topic:


a. How can we assess the impact of climate change and associated climate policies on various macroeconomic outcomes? In particular, what tools can help to assess the impact of climate change on economic growth, government finances (such as disruptions in revenues or expenditure needs for rebuilding), and debt dynamics/debt sustainability, both in the short and medium term? How can we integrate into typical macroeconomic projections the impact of different types of climate shocks, which may take the form of one-off events (e.g., natural disasters), higher volatility (e.g., more frequent disaster events, higher fluctuations in temperature), or ongoing change that may require continuous adjustment (e.g., continuous rises in sea levels and average temperatures)?

b. What is the optimal (macroeconomic) policy mix to deliver on a country’s climate goals? Climate mitigation policies may involve ambitious investment programs in building resilient infrastructure and clean technologies. How could such investment programs, as well as the monetary-fiscal policy mix, be designed to achieve climate goals, including the nationally determined contributions (NDCs) that are part of the Paris Agreement?

c. What are the distributional implications of climate change and associated policies? How can we measure the distributional implications of climate change and climate policies, both regionally and across income levels, to aid the design of macroeconomic policies that achieve climate goals and enhance inclusion?



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