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CLIMATE CHANGE, ADAPTATION AND ECONOMIC GROWTH 

Abstract

This paper explores the links between economic growth and the impacts of climate change. Inclusive, pro-poor growth is central to the development of low-income countries.  There is also a broad consensus that growth and development are  important to reduce vulnerability to climate change.  Growth does not automatically reduce vulnerability, only the right kind of growth does.  The paper aims to develop a better understanding of what the “right kind of growth” may be.  We find that many growth policies, such as investment in skills and access to finance, indeed reduce vulnerability to climate change.   However, climate change calls for some adjustments in growth policy.  In particular, investment in infrastructure and efforts to stimulate entrepreneurship and competitive markets must take more of a risk management perspective and recognise climate risks.  

Keywords:  economic growth, development, adaptation 

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