The Economics of Climate Change

In, S. Y. and Park, K. Y. (2021). "The Economics of Climate Change." The Korean Journal of Economics, 28(1), 137-199.

Posted: 30 Jun 2021

See all articles by Soh Young In

Soh Young In

Stanford University - School of Engineering; Precourt Institute for Energy, Stanford University

Ki Young Park

Yonsei University

Date Written: June 29, 2021

Abstract

This study aims to provide a comprehensive review of key issues related to climate change to economists. For this purpose, we first discuss the established scientific facts of climate change and then discuss their implications to the economy and the field of economics. We start with explaining scientific consensus on climate change, types of climate risks and measures to mitigate them, need for international cooperation and the current state of South Korea. We then elaborate on economic perspectives of climate change and highlights the critical roles of economic research in this subject. In particular, we cover key discussions on economic modeling such as integrated assessment model (IAM), carbon pricing of carbon tax and cap & trade, climate finance, climate stress test, and green new deal. After reviewing key issues, we call for prompt attention from economists and policymakers to address since South Korea is facing relatively higher transition risks to low carbon economy.

Keywords: Climate Change, Carbon Pricing, Green New Deal, IAM (Integrated Assessment Model), Climate Finance

JEL Classification: A11, Q54

Suggested Citation

In, Soh Young and Park, Ki Young, The Economics of Climate Change (June 29, 2021). In, S. Y. and Park, K. Y. (2021). "The Economics of Climate Change." The Korean Journal of Economics, 28(1), 137-199., Available at SSRN: https://ssrn.com/abstract=3704761

Soh Young In (Contact Author)

Stanford University - School of Engineering ( email )

Stanford, CA 94305-9025
United States

Precourt Institute for Energy, Stanford University ( email )

473 Via Ortega, Suite 324
Stanford University
Stanford, CA 94305
United States

HOME PAGE: http://https://energy.stanford.edu/

Ki Young Park

Yonsei University ( email )

Yonsei University
Seoul
Korea, Republic of (South Korea)

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