Integrating Climate Change into Macroeconomic Analysis: A Review of Impact Channels, Data, Models, and Scenarios by 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, and Sha Yu published by IMF (8/2025).
Climate change poses significant and diverse impacts on countries’ macroeconomic and financial stability, resulting in complex macro-critical policy challenges. Consequently, where significant, country-level macroeconomic analysis may need to integrate climate change-related impacts and policies. This 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.
