Economics and climate change

Economics and climate change
What role should economists then play in the fight against climate change? As with all other economic problems, economists have formed and advocated normative economicpolicies to mitigate the effects of climate change, which have generated great debate. It is important to understand these debates and decide on the most effective measures. In future, economic analysis should hopefully yield new estimates of mitigation benefits and improve our understanding of costs in the presence of various market distortions. It should also create better tools for making policy choices under uncertain conditions, and alternate mechanisms for good environmental policy. A better and more comprehensive understanding of the economics of climate change would greatly enhance the formulation and implementation of a range of innovative climate change policies at domestic and international levels.
Conclusion The effects of climate change will have far reaching impacts on our lives, and there is no doubt that it is an uphill task to resolve this global issue. While the debate over the economics of climate change remains heated and there are no clear answers as to the best means of mitigating the effects of climate change, it is nevertheless a positive sign that citizens and countries around the world recognise theseverity of the problem of climate change. Indeed, many countries have pledged to join the fight against global warming by reducing their greenhouse emissions and adopting environmentally friendly policies, including China, one of the world’s largest emitters of greenhouse gases.
On a micro level, firms and consumers have also rallied toward recognised the importance of building a sustainable environment for our future. Firms have adopted cleaner technology while consumers have displayed greater environmental awareness and activism, such as by switching to more fuel efficient cars. Governments have also recognised the importance of building a sustainable blueprint for the future. International agreements such as the Kyoto Protocol also show the urgent need for global cooperation. It is hoped that the United Nations Climate Change conference in Copenhagen this December would lead to a newinternational agreement on climate change, as the Kyoto Protocol expires in 2012. Will our actions today translate intoa cleaner and greener future? Perhaps only posterity can tell. Nevertheless, it is crucial to take action now to create a better environment for ourselves and future generations.