Progress in the Research of Environmental Macroeconomics

Abstract

This review systematically introduces the current main research directions of environmental macroeconomics. Environmental macroeconomics research aims to study the relationship between economic development and the ecological environment and ultimately achieve green outcomes. At the same time, maintaining a moderate economic scale within the environmental setting is vital to get rid of excessive dependence on economic growth. This review draws on the traditional macroeconomics framework, focusing on economic growth, the economics of climate, economic policy, work, consumption, technological progress, industrial structure, and other topics. Although most studies have highlighted the importance of environmental issues, few empirical analyses combine environmental policy with economic policy, production, consumption, climate change, etc., and theories such as ecological, technological progress, business cycle, and environmental policy lack the necessary practical support. It is, therefore, difficult to put forward appropriate and measurable  policy recommendations. Environmental macroeconomics is still a relatively new field of research, the theoretical system has flaws, and innovations in models still need to be improved. We suggest that environmental policy formulation be placed in a dynamic general equilibrium framework.