The Economics of Climate Change: The Stern

There is now clear scientific evidence that emissions from economic activity, particularly the burning of fossil fuels for energy, are causing changes to the Earth´s climate. A sound understanding of the economics of climate change is needed in order to underpin an effective global response to this challenge. The Stern Review is an independent, rigourous and comprehensive analysis of the economic aspects of this crucial issue. It has been conducted by Sir Nicholas Stern, Head of the UK Government Economic Service, and a former Chief Economist of the World Bank. The Economics of Climate Change will be invaluable for all students of the economics and policy implications of climate change, and economists, scientists and policy makers involved in all aspects of climate change.

Preface	p. ix
Acknowledgements	p. xi
Introduction	p. xiii
Summary of Conclusions	p. xv
Climate Change - Our Approach
Introduction	p. 1
The Science of Climate Change: Scale of the Environment Challenge	p. 3
Economics, Ethics and Climate Change	p. 25
Ethical Frameworks and Intertemporal Equity	p. 46
Impacts of Climate Change on Growth and Development
Introduction	p. 63
How Climate Change will Affect People Around the World	p. 65
Implications of Climate Change for Development	p. 104
Costs of Climate Change in Developed Countries	p. 138
Economic Modelling of Climate-Change Impacts	p. 161
The Economics of Stabilisation
Introduction	p. 191
Projecting the Growth of Greenhouse-Gas Emissions	p. 193
Climate Change and the Environmental Kuznets Curve	p. 216
The Challenge of Stabilisation	p. 218
Identifying the Costs of Mitigation	p. 238
Macroeconomic Models of Costs	p. 267
Structural Change and Competitiveness	p. 282
Key Statistics for 123 UK Production Sectors	p. 297
Opportunities and Wider Benefits from Climate Policies	p. 302
Towards a Goal for Climate-Change Policy	p. 318
Policy Responses for Mitigation
Introduction	p. 349
Harnessing Markets for Mitigation - The Role of Taxation and Trading	p. 351
Carbon Pricing and Emissions Markets in Practice	p. 368
Accelerating Technological Innovation	p. 393
Beyond Carbon Markets and Technology	p. 427
Policy Responses for Adaptation
Introduction	p. 455
Understanding the Economics of Adaptation	p. 457
Adaptation in the Developed World	p. 471
Adaptation in the Developing World	p. 486
International Collective Action
Introduction	p. 507
Framework for Understanding International Collective Action for Climate Change	p. 509
Creating a Global Price for Carbon	p. 530
Supporting the Transition to a Low-Carbon Global Economy	p. 555
Promoting Effective International Technology Co-operation	p. 581
Reversing Emissions from Land Use Change	p. 603
International Support for Adaptation	p. 622
Conclusions: Building and Sustaining International Co-operation on Climate Change	p. 640
Abbreviations and Acronyms	p. 645
Postscript	p. 649
Technical Annex to Postscript	p. 658
Index	p. 673
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The Economics of Climate Change: The Stern Review

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