New Macroeconomics

CHAPTER 4

The Environment and Macroeconomics

Environmental economics is a controversial subject because a good part of this literature believes in the phenomenon of global warming occurring through man-made climate change, and some experts including some scientists are not sure if this warming is a natural part of the weather cycle or is caused by human activity. But there is no doubt that the global environment has become very polluted and there is a lot of research that shows that much of this pollution has resulted from the burning of fossil fuels such as coal, petroleum, and gasoline. The world has rapidly industrialized to raise its economic growth and reduce poverty, but this growth means an increasing use of oil and gasoline, which in ...