ECONOMIC MODEL FOR GLOBAL WARMING

Mr. Sarat Chandra Mohanty, Assistant Professor

Kalinga University, Raipur

The process of creating a financial framework to combat global warming is intricate and multidisciplinary, including consideration to economic hypothesis, policy evaluation, and environmental research. The economic model should take into consideration the externalities linked to climate change, provide incentives for sustainable activities, and promote international collaboration. One essential step is putting in place a carbon pricing scheme, like a cap-and-trade scheme or carbon tax. By internalizing the external costs of carbon emissions, this structure motivates organizations and people to lessen their environmental impact. To encourage innovation and investment in clean energy technology, considerable incentives can be offered for the development and use of renewable energy sources, such as tax credits, subsidies, and research funds. In order to ensure that nations cooperate to accomplish shared environmental goals and acknowledge that global warming is a shared challenge, agreements and other procedures may be developed as part of the framework for international collaboration on climate change mitigation. International agreements can help to promote the transfer of clean technologies from industrialized to underdeveloped nations. It is noteworthy that the viability of this economic model is contingent upon international collaboration, political determination, and continuous modifications grounded in scientific advancements and the efficacy of executed strategies. Making the shift to a low-carbon, sustainable economy calls for a multipronged strategy that unites corporations, governments, and citizens in a joint endeavor to tackle global warming.