Macro-Economics of Climate Change

Climate change represents the major challenge facing the global economy in coming decades. The aim of this research theme is to assess the effects of climate change and climate policy on the macro-economy.

One of the major challenges of thinking about the macro-economics of climate change is the magnitude of risks and uncertainties. How will temperatures evolve, and how will the climate react? How will this affect productivity and growth? How will individuals and the economy as a whole respond to policy changes? Will the transition be orderly or disorderly?

NIESR’s climate modelling work, which makes use of its longstanding macro-economic model NiGEM, offers insights into the macro-economic implications of many of these areas.

Climate change




Energy and Climate Policy in a DSGE Model of the United Kingdom

08 Mar 2024

Discussion Papers

Golden coils in soil with young plants

Climate Policies and Business Cycles: The Effects of a Dynamic Cap

20 Nov 2023

National Institute Economic Review

Recovery and recession symbol. Businessman hand turns cubes and changes the word 'recession' to 'recovery'. Beautiful white background. Business and recovery - recession concept.

The Sahm Rule and Predicting the Great Recession

20 Nov 2023

National Institute Economic Review

Net Zero and Carbon Neutral Concepts Net Zero Emissions Goals Weather neutral long-term strategy.

Commentary: Macroeconomics and Climate Change

20 Nov 2023

National Institute Economic Review


Short-term Impact from a Rapid Increase in Carbon Taxes

09 Aug 2023

Global Economic Outlook Topical Feature


Global Warming Status Ante Redress: 2021 Outturn and Assessment

12 Dec 2022

Topical Briefing

What is new in the NGFS scenarios?

What is New in the NGFS Scenarios?

10 Nov 2022

Global Economic Outlook Box Analysis


Is Development the Price of 1.5°c and Net Zero for 2050?

03 Nov 2022

Policy Papers

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Blog Posts

The Macroeconomic effects of

The Macroeconomic Effects of Carbon Pricing

Kemar Whyte

Stephen Millard

21 Feb 2022

8 min read