Economic activity and climate change
Abstract
In this paper, we survey recent econometric contributions to measure the relationship between economic activity and climate change. Due to the critical relevance of these effects for the well-being of future generations, there is an explosion of publications devoted to measuring this relationship and its main channels. The relation between economic activity and climate change is complex with the possibility of causality running in both directions. Starting from economic activity, the channels that relate economic activity and climate change are energy consumption and the consequent pollution. Hence, we first describe the main econometric contributions about the interactions between economic activity and energy consumption, moving then to describing the contributions on the interactions between economic activity and pollution. Finally, we look at the main results on the relationship between climate change and economic activity. An important consequence of climate change is the increasing occurrence of extreme weather phenomena. Therefore, we also survey contributions on the economic effects of catastrophic climate phenomena.
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