The key element in the tension between those who believe climate change is an issue and those who do not is essentially the question of whether we are merely in a long period of shock-induced above average temperatures or if we have led to this increase in temperatures by anthropogenic carbon...

This paper presents an economy and climate model of 60 overlapping generations of finite lived agents and competitive firms interacting with a physical environment. Use of energy in production results in the release of carbon to the atmosphere which can affect global climate, and thus...