An overview of the workshop Incorporating Climate Change and Climate Policy into Macroeconomic Modeling hosted by the National Academies
Macroeconomic frameworks, pivotal in guiding decision-making processes and formulating federal budgets, cannot account for the broad spectrum of climate-related consequences with macroeconomic impacts. The difficulties in embedding climate considerations into macroeconomic evaluations arise from the complexity of global macroeconomics, climate sciences, and policy tools. In lieu of advancements by economists in developing methodologies to assess the impact of climate on the macroeconomy, a majority of the research bridging climate and macroeconomic disciplines is traditionally pursued in separate fields of study, which hinders a comprehensive grasp of how climate factors affect the macroeconomic landscape.
The National Academies of Sciences, Engineering, and Medicine, through the guidance of the Roundtable on Macroeconomics and Climate-Related Risks and Opportunities, hosts a comprehensive workshop on the topic. The workshop is structured to reevaluate existing macroeconomic models and identify potential improvements for better integrating climate-related considerations into macroeconomic modeling efforts. It features a series of presentations by distinguished speakers with breakout discussions. Further, the discussions provide an opportunity to examine various macroeconomic models and explore practical strategies for incorporating climate change’s direct and indirect effects.
This document summarizes the insights shared during the workshop and is organized to enable easy navigation and understanding of the critical points. Contributor(s): National Academies of Sciences, Engineering, and Medicine; Division on Earth and Life Studies; Policy and Global Affairs; Division of Behavioral and Social Sciences and Education; Board on Atmospheric Sciences and Climate; Board on Science, Technology, and Economic Policy; Board on Environmental Change and Society; Roundtable on Macroeconomics and Climate-Related Risks and Opportunities; Bridget McGovern; and, Katrina Hui.
(Source: National Academies of Sciences, Engineering, and Medicine. 2024. Incorporating Climate Change and Climate Policy into Macroeconomic Modeling: Proceedings of a Workshop. Washington, DC: The National Academies Press. DOI Reference.)
About the Roundtable on Macroeconomics and Climate-related Risks and Opportunities
“The National Academies’ Roundtable on Macroeconomics and Climate-related Risks and Opportunities is a new venue for federal agencies and cross-disciplinary experts in academia, industry, and non-governmental organizations to discuss challenges associated with integrating climate change and climate policy into macroeconomic analyses and projections. The Roundtable is comprised of volunteer experts in fields including economics, earth and life sciences, public policy, engineering, and sociology, and also welcomes several members in an ex officio capacity, including from the White House Council of Economic Advisors and the Office of Management and Budget. This effort aims to develop a scholarly and analytic foundation that can inform policy with macroeconomic analyses that incorporate a full, nuanced, and rigorous understanding of the potential impacts of climate change and climate-related transitions. Visit the project page to sign up for email updates about our work.”
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