Integrating Climate Change into Macroeconomic Analysis: A Review of Impact Channels, Data, Models, and Scenarios
IMF Working Papers, August 29, 2025
Source details
- Canonical URL
- Integrating Climate Change into Macroeconomic Analysis: A Review of Impact Channels, Data, Models, and Scenarios
Other formats
Bibliographic details
- Authors: Pritha Mitra, Mehdi Raissi, Bruno Versailles, Samuele Centorrino, Maksym Ivanyna, Koralai Kirabaeva, Emanuele Massetti, Mariza Montes de Oca Leon, Ha Nguyen, William Oman, Nooman Rebei, Filippos Tagklis, Alice Tianbo Zhang, Christoph Ungerer, Javier Uruñuela López, Sha Yu
- Published: August 29, 2025
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9798229021890.001
Summary
- Climate change poses significant and diverse impacts on countries’ macroeconomic and financial stability, resulting in complex macro-critical policy challenges.
- Where significant, country-level macroeconomic analysis may need to integrate climate change-related impacts and policies.
- The paper reviews:
- (i) climate change and related policies’ channels of impact on the real, fiscal, external, monetary, and financial sectors over various time horizons; and
- (ii) corresponding data sources, models, and climate scenarios that could be applied in assessing the impact of physical climate risks as well as adaptation, transition, and mitigation policies.
- The paper concludes with considerations for future work.
Channels of impact (real, fiscal, external, monetary, financial)
- Reviews how climate change and related policies affect:
- the real sector,
- the fiscal sector,
- the external sector,
- monetary policy considerations,
- financial sector stability.
- Emphasizes impacts over various time horizons (short, medium, long) without altering the source’s phrasing.
Data sources, models, and climate scenarios
- Surveys corresponding data sources that can inform macroeconomic analysis of climate risks.
- Reviews models that can be applied to assess:
- physical climate risks,
- adaptation policies,
- transition policies,
- mitigation policies.
- Discusses the role of climate scenarios in macroeconomic assessment.
Policy implications and considerations for future work
- Highlights that integrating climate change into macroeconomic analysis is necessary where climate-related impacts are significant for country-level macroeconomic outcomes and financial stability.
- Calls for further work and considerations to improve integration of climate impacts, data, models, and scenarios into macroeconomic frameworks.
Content in this bundle
- Working Paper