Sobering projections

Macroeconomic impact of climate change will be big

Large parts of northern and central India are reeling from sweltering heat conditions. Given that social and economic costs associated with a warming planet are yet to fully materialise, there is a need for discussion on the macroeconomic ramifications of climate change. Attempts have been made in the past to accurately quantify the social cost of carbon (SCC) and the impact of climate change on gross domestic product (GDP), productivity, consumption, and investment spending. In this context, a recent working paper, “The Macroeconomic Impact of Climate Change: Global vs Local Temperature”, published by the National Bureau of Economic Research (NBER),