Climate Change: The Stern Review 1

The Stern Review has the potential to become the most significant document produced on global warming. It is notable in that it is:

• Focused on the economics of climate change
• Sponsored by a major government that accepts its findings
• Written by an eminent economist
• Doesn’t have the need to argue the toss about the issue

It was commissioned by the UK government, and written by Sir Nicholas Stern, one-time Chief Economist at the World Bank.

The central conclusions:

• There is still time to avoid the worst impacts of climate change, if we take
  strong action now.
• Climate change could have very serious impacts on growth and development.
• The costs of stabilising the climate are significant but manageable; delay
  would be dangerous and much more costly.
• Action on climate change is required across all countries, and it need not cap the aspirations for growth of rich or poor countries.
• A range of options exists to cut emissions; strong, deliberate policy action is required to motivate their take-up.
• Climate change demands an international response, based on a shared
  understanding of long-term goals and agreement on frameworks for action.

The UK government’s website for the report has comments from leading economists. The report can be downloaded; the executive summary is also available (the ‘summary of conclusions’ is identical).