Recently there have been a number of discussions concerning economic growth and global warming. Some have argued that the effort to prevent as much global warming as possible will incur unacceptable costs to the global economy in terms of growth. Others have argued that growth is causing global warming.
I want to argue that neoclassical economics is badly designed to help with this debate. The two main problems, in my opinion, are that economics does not see the economy as being composed of a set of nonsubstitutable "life support" functions, to use Joshua Farley's phrase; and the neoclassical theory of economic growth is inadequate (PDF) for understanding how global warming (and most everything else) will effect growth.
The problem of economic growth looms large in both the DICE model put forward by William Nordhaus, and the Stern Report, led Sir Nicholas Stern, because they both calculate the extent to which global warming and global warming mitigation will effect growth. In 1991, Stern opined that growth theory "has, however, been a popular topic for those involved in formal economic theory only for short periods, notably from the mid 1950s to the late 1960s." There is a good reason for this: neoclassical growth theory doesn't really explain economic growth.