leaving aside for the moment the climate physics,the first non trivial problem is how robust is the intergration of economic classical theory into a coupled model.
If the so called growth model is so robust,why have we seen the greatest destruction of wealth in history ie an economic tipping point.eg 2009 figures.
Credit related losses $2 trillion
Equity markets $30 trillion
Housing market $4 trillion
Lost productivity $3 trillion
This is the fundamental debate,rather then the physics .The arguments by Nordhaus etc are limiting,and often counterproductive ie centrist focused.
The debate needs to be broader so as to move from partisan ideological idioms.
A number of contrasting POV abound of interest is Hallegate 2008
http://www.sciencedirect.com/science/article/pii/S0167268107001114
From the paper
The key parameter in NEDyM is investment flexibility. For certain values of this parameter, the model reproduces classical business cycles with realistic characteristics; in particular, NEDyM captures the cycles’ asymmetry, with a longer growth phase and more rapid contraction. The cyclical behavior is due to the investment{profit instability and is constrained by the increase in labor costs and the inertia of production capacity. For somewhat greater investment flexibility, the model exhibits chaotic behavior, because a new constraint intervenes, namely limited investment capacity. The preliminary results presented here show that complex behavior in the economic system may be due entirely, or at least largely, to deterministic, intrinsic factors, even if the economic long-term equilibrium is neo-classical in nature. In the chaotic regime, moreover, slight shocks { such as those due to natural or man-made catastrophes { may lead to significant changes in the economic system.
This paper introduces a modeling framework for macroeconomic growth dynamics that is motivated by recent attempts to formulate and study \integrated models” of the coupling between natural and socio-economic phenomena. These attempts are driven, at least in part, by public debate about global issues, such as anthropogenic climate change. The challenge is to describe the interfaces between human activities and the functioning of the earth system over the very long term. In this context, economists have used primarily longterm growth models in the Solow tradition, relying on the idea that, over time scales of decades to centuries, the golden-age paradigm is an acceptable metaphor. This approach appears, however, to be increasingly at variance with the nature of the policy debates in the field. Advocates of stringent emission limits are concerned about the cost of damages caused by climate change, while their opponents worry about the cost of greenhouse gas abatement. But balanced growth models that incorporate many sources of flexibility tend to suggest that the damages caused by disruptions of the natural | i.e., physical and biological planetary systems, as well as the mitigation policies proposed to prevent these disruptions, will entail only a few percent” of losses in gross domestic product (GDP) over this century (IPCC, 2001). Both categories of activists tend thus to suspect that the figures suggested by current models underestimate either type of costs, since real economies rarely manifest a tendency to steady-state behavior
Another with a different interpretation is energy security
eg V. G. Gorshkov, A. M. Makarieva, B.-L. Li
Comprehending environmental and economic sustainability: Comparative analysis of stability principles in the biosphere and free market economy
Abstract
Using the formalism of Lyapunov potential function it is shown that the stability principles for biomass in the ecosystem and for employment in economics are mathematically similar. The ecosystem is found to have a stable and an unstable stationary state with high (forest) and low (grasslands) biomass, respectively. In economics, there is a stable stationary state with high employment, which corresponds to mass production of conventional goods sold at low cost price, and an
unstable stationary state with lower employment, which corresponds to production of novel goods appearing in the course of technological progress. An additional stable stationary state is described for economics, the one corresponding to very low employment in production of life essentials such as energy and raw materials. In this
state the civilization currently pays 10% of global GDP for energy produced by a negligible minority of the working population (currently ~0.2%) and sold at prices greatly exceeding the cost price by 40 times. It is shown that economic ownership over energy sources is equivalent to equating measurable variables of different dimensions (stores and fluxes), which leads to effective violation of the laws of energy and matter conservation
In other words if structual asymmetry and instability is already present in both global business and the energy markets,.does poorly thought out policy redress the imbalances and create stability,or further extend both problems.