The Economics of Climate Change: The Stern Review

“This Review has assessed a wide range of evidence on the impacts of climate change and on the economic costs, and has used a number of different techniques to assess costs and risks. From all of these perspectives, the evidence gathered by the Review leads to a simple conclusion: the benefits of strong and early action far outweigh the economic costs of not acting.”

The main findings of The Economics of Climate Change: The Stern Review included:

• 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; and
• climate change demands an international response, based on a shared understanding of long-term goals and agreement on frameworks for action.

The Economics of Climate Change: The Stern Review has become one of the most influential reports on climate change ever produced since its release by Her Majesty’s Treasury of the UK Government in October 2006. The report was published as a volume

in January 2007 by Cambridge University Press.

It was led by Nicholas Stern, then Head of the UK Government Economic Service, and now Chair of both the ESRC Centre for Climate Change Economics and Policy

and the Grantham Research Institute on Climate Change and the Environment at the London School of Economics and Political Science.

The Economics of Climate Change: The Stern Review was announced by the UK Chancellor of the Exchequer, Gordon Brown, in July 2005, and was commissioned to report to the Prime Minister, Tony Blair, and the Chancellor by autumn 2006, on the following issues:

• the economics of moving to a low-carbon global economy, focusing on the medium- to long-term perspective, and drawing implications for the timescales for action, and the choice of policies and institutions;
• the potential of different approaches for adaptation to changes in the climate; and
• specific lessons for the UK, in the context of its existing climate change goals.

Since its publication, Nicholas Stern and the contributors to the Review have published a number of academic papers relating to the report. In 2015, ‘Proceedings of the Royal Society: B’ published a paper

by Lord Stern reflecting on the development of climate change policies during the 10 years since The Stern Review was commissioned.

Academic papers relating to ‘The Economics of Climate Change: The Stern Review’

Papers by contributors to the Review

World Economics, volume 8, number 1, pages 121 – 168.

World Economics, volume 8, number 1, pages 169 – 186.

Simon Dietz, Dennis Anderson, Nicholas Stern, Chris Taylor and Dimitri Zenghelis (2007). Right for the right reasons: a final rejoinder on the Stern Review.

World Economics, volume 8, number 2, pages 229 – 258.

Global Environmental Change, volume 17, issues 3–4, pages 311–325.

Review of Environmental Economics and Policy, volume 2, issue 1, pages 94-113.

American Economic Review, volume 98, number 2, pages 1–37.

Review of Environmental Economics and Policy, volume 3, issue 1, pages 138-140.

Other papers about the Review

World Economics, volume 8, number 1, pages 187 – 210.

World Economics, volume 8, number 1, pages 211 – 219.

John F. Mitchell, Julia Slingo, David S. Lee, Jason A. Lowe and Vicky Pope (2007). Response to Carter et al.

World Economics, volume 8, number 1, pages 221 – 228.

Nigel Arnell, Rachel Warren and Robert Nicholls (2007). Response to ‘The Stern Review: A Dual Critique’.

World Economics, volume 8, number 1, pages 229 – 231.

World Economics, volume 8, number 1, pages 233 – 238.

World Economics, volume 8, number 2, pages 133 – 141.

Journal of Economic Literature, volume 45, number 3, pages 703-724.

Climatic Change, volume 96, number 3, pages 275-297.