Numerous theoretical underpinnings have surfaced in an effort to articulate the connection between climate change and the economy. This review challenges the current state of knowledge on the topic by utilizing new developments in the empirical and theoretical literature. Using an amalgam of literature study and empirical point in case, we highlight the key constraints and limitations of the current theories of climate change and economy. Particularly, ideas that place a strong emphasis on quick economic expansion and the proliferation of measures to achieve it even at the detriment of environmental quality. Numerous studies indicate that growth is a must from the standpoint of sustainable development, but they cannot be viewed as a one-size-fits-all solution. Notably, it is frequently best to combine policies that promote growth with those that safeguard the environment.