ABSTRACT
This chapter discusses first the economics of low carbon development and then discusses options for financing the transition to a low carbon economy. The chapter addresses the economic impact of climate change, the costs of stabilizing GHG emissions and the financial options for moving towards a low carbon economy. The chapter makes reference to the Stern Review on the economics of climate change, which suggests that deep cuts in emissions will be required to mitigate climate change, whereas the costs will be significant but manageable. Nevertheless the Stern Review is highly disputed for various reasons, which are explored and evaluated here to provide an understanding of the economics of climate change and the assumptions behind these prominent figures. Furthermore the chapter explores more wide-ranging criticism of economics and low carbon development.
