Implications of climate change and ecosystem services degradation for macroeconomic and financial stability

Abstract

The accelerating degradation of climate and natural ecosystems presents profound challenges for ensuring macroeconomic and financial stability. This volume explores the complex and systemic risks posed by climate change and lost ecosystem services through the lens of cutting-edge economic research. Drawing on contributions from leading scholars, the collected papers underscore the importance of adopting an integrated, multidisciplinary approach to address the risks posed by climate change and the degradation of ecosystem services. They collectively highlight that fostering technological innovation, incorporating the value of natural capital into macroeconomic decision-making, embedding ecological and climate-related risks into financial oversight, and advancing coordinated policy frameworks are all critical for building resilient and sustainable economic systems. As environmental pressures continue to build up, the implications of climate change and ecosystem services degradation intensify. The insights and strategies presented here offer a coherent roadmap for researchers, policymakers, and financial institutions seeking to preserve macroeconomic and financial stability in the face of escalating nature-related crises.