The literature on environmental macroeconomics is still in its early stages and does not yet have a fully defined framework. Therefore, this section examines the theoretical and conceptual foundations of environmental economics and current research on environmental economics from a macroeconomic perspective.

Current macroeconomic theory has so far addressed environmental issues as the relationship between CO2 emissions and growth. However, other macroeconomic variables and environmental issues have recently begun to be associated. The concept of climate change is part of a broader network of environmental issues, such as population growth, problems in agricultural production, water resources, and species loss. To achieve a low-carbon future, it is necessary to control population growth, reduce consumption, and take care to protect the environment. Therefore, macroeconomic theory needs to evolve to respond to these new challenges.

This study briefly summarizes the main concepts and discussions in the literature on environmental macroeconomics. Theoretical and empirical studies on this topic have been reviewed, and the framework of environmental issues has been outlined, showing the global dimension of the problem. In the continuation of the study, the macroeconomic effects of environmental factors are discussed in light of the debates in the literature, with a particular focus on their impact on inflation. Additionally, the study examines how the traditional IS-LM model has been extended to include environmental effects. Finally, this study presents a sustainable economic growth model and demonstrates the relationship between economic growth and the environment using the Environmental Kuznets Curve.