CLIMATE AND ECONOMIC-DEVELOPMENT - CLIMATES PAST AND CLIMATE-CHANGE FUTURE

Economists and development practitioners have a long agenda of concerns, ranging from obsolete capital to inadequate education. Many fear that we are adding to this list by damaging the natural environment through a multitude of interventions, such as the release of greenhouse gases. This paper places the issue of climate change in the context of broader discussions on economic development. It reviews alternative approaches to the role of climate, contrasting an older theory of climatic determinism with modern adaptive approaches. It then briefly reviews concerns about greenhouse warming and surveys current research on the impact of global warming on economic activity. The paper emphasizes the critical need for effective policies, perhaps using carbon taxes, if we are to attain global environmental objectives without placing excessive burdens on economic growth.