Climate Change and Economic Growth

Running head: ECONOMICS
Economics
Name of the student
Name of the university
Author note

1ECONOMICS
Table of Contents
Introduction................................................................................................................................2
Global warming..........................................................................................................................2
Economic cost of the climate change.........................................................................................2
Paris agreement..........................................................................................................................3
Relationship between the policy of the climate change and the economic growth...................4
Control measures of the greenhouse gas emissions...................................................................5
United Nations framework convention on climatic change.......................................................5
Greenhouse gas protocol............................................................................................................6
Greenhouse gases.......................................................................................................................6
Role of carbon taxes in adjusting global warming.....................................................................6
Energy pollution.........................................................................................................................7
Price tag of the global mitigation...............................................................................................7
Kyoto protocol...........................................................................................................................8
Conclusion..................................................................................................................................9
Reference list............................................................................................................................10

2ECONOMICS
Literature review of the climate changes
Introduction
The climatic change is the change in the statistical distribution of the weather patterns
when that change is known to last for a huge period of time. The climate change can take
place as a result of variation in solar radiation, changes in biotic process and due to volcanic
eruptions. However, there have been introduction of many treaties which had been
implemented for the reduction of greenhouse gas emissions.
Global warming
One of the most discussed topics in the present world is “Global Warming”. Global
warming is the phenomenon of heating up of the atmosphere of earth by the greenhouse gases
which is known to include carbon di oxide, water vapour, chlorofluorocarbons and sulphur
dioxide. The various activities which are undertaken by the various people have made the
emission level of the greenhouse gases surpassing beyond the level of 350ppm. It has
therefore lead to increase in the temperature of earth at the range of 5.8°C (Skjærseth and
Wettestad 2016). Presently, India, USA, Russia and Japan are known to be the main
contributors of the global warming. The global warming is known to lead to devastating
consequences such as rise in the sea level and huge changes in the rainfall.
Economic cost of the climate change
Various studies had been already made for estimating the economic damage which the
climate change is known to impose in the absence of the efforts of mitigation. Authors Titus
and Cline have known to analyse the welfare effects of the climate change taking place in the
United States of America. Many studies have estimated the fact that for an increase in the
global temperature to more than two degree Celsius there will be climate change which is
also known to affect the global gross domestic product (Ranson and Stavins 2016).

3ECONOMICS
Researchers have known to use either statistical approach or enumerative approach in order
to find the effects of the climate change. The studies which have known to use the
enumerative approach are known to obtain estimates of the physical effect of the climate
change. On the other hand, the studies which are known to use the statistical approach are
known to estimate how the income across the world, output of the sector as well as household
consumption have known to change over time. When compared to the enumerative
approach, it can be said that the statistical studies are known to base on the real world
differences of climate and income which have been already observed. The researchers have
also found out that when the emissions of the greenhouse gases have known to become
double on the current level, the loss to the gross domestic product will be equal to a year’
growth in the global economy (Skjærseth. and Wettestad 2016). Therefore, this suggest that
there will be huge economic loss from the climate change in the future years.
Paris agreement
The Paris Agreement is known to deal with the greenhouse gas emissions mitigations
and adaption. The main object of the Paris Agreement is to keep the increase in the global
temperature to below 2 degree Celsius which is above the pre-industrial level. It is also
known to limit the increase in temperature to 1.5 degree Celsius because this will lead to
reduction in the risk and the effects of the climate change. Under the Paris Agreement, each
of the country is known to plan and also report regularly on the contribution which is known
to mitigate the global warming (Riahi et al. 2016). The Paris Agreement were signed in
December, 2015 which is a new global agreement for combating the climate change. It was
also known to be adopted under the United Nations Framework Convention on Climate
Change.
In one of the research paper by Farooqi have used data of fifty years for analysing the
past climatic changes. The paper have graphs where the mean annual , maximum and mean