Abstract. This paper explores the economic impacts of climate change and the role of carbon pricing as a key policy instrument for mitigation. Drawing upon the theoretical contributions of Nicholas Stern, William Nordhaus, Joseph Stiglitz, and Jeffrey Sachs, the study examines how economic frameworks interpret and address the intersection between environmental degradation and economic growth. Stern’s and Sachs’s analyses emphasize moral responsibility and global inequality, while Nordhaus and Stiglitz focus on cost efficiency and market-based solutions.