Climate change: selected economic dimensions

The paper highlights several key economic issues of the climate change debate. Section I states the need to adopt a precautionary approach to the climate change challenge in the face of uncertainty; while Section II illustrates the key economic drivers of climate change. Section III provides an analysis of the economic gains and losses posed by climate change and the inequalities implied by the regional and sectoral distribution of these gains and losses; and Section IV explores potential economic tools for addressing climate change, namely emissions taxes, cap and trade regimes, command and control measures, research and scientific and technological development and land use policies. Section V looks briefly at options for the Caribbean to address climate change. Major recommendations for the Caribbean center on the conduct of further research on the economic impacts of climate change, the accelerated implementation of national adaptation and mitigation plans that need to be accompanied by national capacity assessments and resource mobilization strategies for funding the plans, increased energy efficiency, incentives for technology transfers and innovation, and greater efforts at implementing existing regional policy frameworks such as the Caribbean Disaster Management Framework. Section VI analyzes the key areas where the United Nations can play a critical role in addressing the economic impacts of climate change. The five areas identified center on: (a) Promotion of sustainable development and implementation of United Nations conventions and treaties; (b) Support to the development and transfer of energy-efficient and renewable energy technologies from developed to developing countries; (c) Facilitating international coordination and actions for the continued reduction and removal of greenhouse gas emissions from the atmosphere; (d) Mobilizing public opinion on the impacts of climate change and needed policy responses; and (e) Mobilizing finance for climate change adaptation and mitigation. Section VII concludes by highlighting the need to depart from “business as usual” approaches in order to address climate change.