Macroeconomics of Climate Change

  1. Impacts of Climate Change on the Macroeconomy
    1. Transmission Channels
      1. Physical Risks
        1. Acute Risks
          1. Extreme Weather Events
            1. Hurricanes and Cyclones
              1. Heatwaves
                1. Droughts
                  1. Floods
                  2. Wildfires
                    1. Storm Surges
                    2. Chronic Risks
                      1. Sea-level Rise
                        1. Coastal Erosion
                          1. Salinization of Water Supplies
                            1. Infrastructure Submersion
                            2. Changes in Precipitation Patterns
                              1. Drought Frequency and Severity
                                1. Flooding Patterns
                                  1. Water Scarcity
                                  2. Rising Average Temperatures
                                    1. Heat Stress on Labor
                                      1. Shifts in Agricultural Zones
                                        1. Energy Demand Changes
                                    2. Transition Risks
                                      1. Technology Risks
                                        1. Technological Obsolescence
                                          1. Adoption Barriers for New Technologies
                                            1. Innovation Uncertainty
                                            2. Market and Reputational Risks
                                              1. Shifts in Consumer Preferences
                                                1. Investor Sentiment and Divestment
                                                  1. Supply Chain Disruptions
                                              2. Effects on Key Macroeconomic Variables
                                                1. Gross Domestic Product and Economic Growth
                                                  1. Damage to Capital Stock
                                                    1. Infrastructure Destruction
                                                      1. Loss of Productive Assets
                                                        1. Depreciation Acceleration
                                                        2. Impacts on Labor Productivity and Supply
                                                          1. Health Impacts on Workers
                                                            1. Migration and Displacement
                                                              1. Working Hour Reductions
                                                              2. Agricultural Output Effects
                                                                1. Crop Yield Reductions
                                                                  1. Livestock Productivity Losses
                                                                    1. Food Security Implications
                                                                    2. Supply Chain Disruptions
                                                                      1. Trade Route Interruptions
                                                                        1. Input Shortages
                                                                          1. Just-in-Time Vulnerabilities
                                                                          2. Sectoral Heterogeneity
                                                                            1. Tourism and Recreation
                                                                              1. Fisheries and Marine Resources
                                                                                1. Forestry and Timber
                                                                              2. Inflation and Price Stability
                                                                                1. Supply Shocks to Food and Energy Prices
                                                                                  1. Food Price Volatility
                                                                                    1. Energy Price Spikes
                                                                                      1. Commodity Market Disruptions
                                                                                      2. Greenflation
                                                                                        1. Cost of Renewable Inputs
                                                                                          1. Supply Chain Bottlenecks for Green Technologies
                                                                                            1. Critical Mineral Scarcity
                                                                                            2. Fossilflation
                                                                                              1. Price Instability from Policy Shifts
                                                                                                1. Stranded Asset Effects on Markets
                                                                                                  1. Geopolitical Risk Premiums
                                                                                                2. Employment and Labor Markets
                                                                                                  1. Job Creation in Green Sectors
                                                                                                    1. Renewable Energy Jobs
                                                                                                      1. Energy Efficiency Services
                                                                                                        1. Environmental Restoration
                                                                                                        2. Job Losses in Carbon-Intensive Industries
                                                                                                          1. Fossil Fuel Extraction and Processing
                                                                                                            1. High-Emission Manufacturing
                                                                                                              1. Coal-Dependent Communities
                                                                                                              2. Labor Reallocation and Skill Mismatches
                                                                                                                1. Need for Reskilling and Training
                                                                                                                  1. Regional Disparities in Employment Effects
                                                                                                                    1. Occupational Mobility Barriers
                                                                                                                  2. Public Finances
                                                                                                                    1. Increased Government Spending
                                                                                                                      1. Disaster Response Expenditures
                                                                                                                        1. Infrastructure Repair and Upgrades
                                                                                                                          1. Adaptation Investments
                                                                                                                          2. Erosion of the Tax Base
                                                                                                                            1. Reduced Economic Activity
                                                                                                                              1. Declining Property Values
                                                                                                                                1. Migration-Induced Revenue Loss
                                                                                                                                2. Contingent Liabilities
                                                                                                                                  1. Government Guarantees and Bailouts
                                                                                                                                    1. Insurance Scheme Backstops
                                                                                                                                      1. Climate Litigation Costs
                                                                                                                                    2. Financial Stability
                                                                                                                                      1. Stranded Assets
                                                                                                                                        1. Fossil Fuel Reserves
                                                                                                                                          1. Obsolete Infrastructure
                                                                                                                                            1. Real Estate in Vulnerable Areas
                                                                                                                                            2. Impacts on Financial Institutions
                                                                                                                                              1. Insurance Sector Stress
                                                                                                                                                1. Banking Sector Credit Risk
                                                                                                                                                  1. Pension Fund Exposures