Economic growth and climate change are two intertwined forces shaping the future of societies. This course begins with one of the central questions in economics: why do some economies grow richer over time, and what determines the pace of long-run growth? We start with the core tools of modern growth theory, from the Solow model to the neoclassical growth model and growth accounting, then use them to study capital accumulation, technological progress, productivity, and the sources of prosperity. In the second half of the course, we bring climate change into the analysis, examining how economists estimate climate damages, how the Nordhaus model links emissions, warming, output, and welfare, and how optimal carbon policy balances growth, the climate, and intergenerational tradeoffs. By the end of the class, you will be able to use rigorous macroeconomic models and frontier data analysis techniques to think clearly about long-run development, climate damages, carbon pricing, and the future of economic growth in a warming world.
4 units · Letter or Credit/No Credit
Economic growth and climate change are two intertwined forces shaping the future of societies. This course begins with one of the central questions in economics: why do some economies grow richer over time, and what determines the pace of long-run growth? We start with the core tools of modern growth theory, from the Solow model to the neoclassical growth model and growth accounting, then use them to study capital accumulation, technological progress, productivity, and the sources of prosperity. In the second half of the course, we bring climate change into the analysis, examining how economists estimate climate damages, how the Nordhaus model links emissions, warming, output, and welfare, and how optimal carbon policy balances growth, the climate, and intergenerational tradeoffs. By the end of the class, you will be able to use rigorous macroeconomic models and frontier data analysis techniques to think clearly about long-run development, climate damages, carbon pricing, and the future of economic growth in a warming world.
Offered in Winter 2027 at Stanford University.