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The "Stern Review" on the Economics of Climate Change

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William D. Nordhaus

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Abstract

How much and how fast should the globe reduce greenhouse-gas emissions? How should nations balance the costs of the reductions against the damages and dangers of climate change? This question has been addressed by the recent "Stern Review on the Economics of Climate Change," which answers these questions clearly and unambiguously. We need urgent, sharp, and immediate reductions in greenhouse-gas emissions. An analysis of the "Stern Review" finds that these recommendations depend decisively on the assumption of a near-zero social discount rate. The Review's unambiguous conclusions about the need for extreme immediate action will not survive the substitution of discounting assumptions that are consistent with today's market place.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 12741.

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Date of creation: Dec 2006
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Handle: RePEc:nbr:nberwo:12741

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Find related papers by JEL classification:
Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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  1. John Creedy, 2007. "Discounting and the Social Time Preference Rate," Department of Economics - Working Papers Series 989, The University of Melbourne. [Downloadable!]
  2. Alexander Ludwig & Michael Reiter, 2008. "Sharing Demographic Risk – Who is Afraid of the Baby Bust?," MEA discussion paper series 08166, Mannheim Research Institute for the Economics of Aging (MEA), University of Mannheim. [Downloadable!]
    Other versions:
  3. Hans-Werner Sinn, 2008. "Public policies against global warming: a supply side approach," International Tax and Public Finance, Springer, vol. 15(4), pages 360-394, August. [Downloadable!] (restricted)
  4. Olivier Godard, 2007. "Climat et générations futures - Un examen critique du débat académique suscité par le Rapport Stern," Working Papers hal-00243059_v1, HAL. [Downloadable!]
  5. Hans-Werner Sinn, 2007. "Public Policies against Global Warming," NBER Working Papers 13454, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  6. John Beshears & James J. Choi & David Laibson & Brigitte C. Madrian, 2008. "How are Preferences Revealed?," NBER Working Papers 13976, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  7. David von Below & Torsten Persson, 2008. "Uncertainty, Climate Change and the Global Economy," NBER Working Papers 14426, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  8. Gary W. Yohe & Richard S.J. Tol, 2007. "The Stern Review: A Deconstruction," Working Papers FNU-125, Research unit Sustainability and Global Change, Hamburg University, revised Feb 2007. [Downloadable!]
    Other versions:
  9. Erling Holmøy, 2007. "Fiscal sustainability: Must the problem be diminished before we can see it?," Discussion Papers 499, Research Department of Statistics Norway. [Downloadable!]
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