Unchecked human-caused global warming will cause trillions of dollars in damages in our lifetimes, with impact comparable to a world war or global depression, but shifting to a low-carbon economy will bring huge economic growth opportunities. The economic benefit of reducing carbon emissions could total $2.5 trillion each year, according to the most comprehensive economic analysis of the effects of global warming, released in October by Sir Nicholas Stern, Head of the U.K.'s Government Economic Service and former World Bank Chief Economist.
According to the press release announcing the study:
"Climate change is the greatest market failure the world has seen. Three elements of policy are required for an effective response.
The first is carbon pricing, through taxation, emissions trading or regulation, so that people are faced with the full social costs of their actions. The aim should be to build a common global carbon price across countries and sectors.
The second is technology policy, to drive the development and deployment at scale of a range of low-carbon and high-efficiency products. And the third is action to remove barriers to energy efficiency, and to inform, educate and persuade individuals about what they can do to respond to climate change."
The Stern Review on the Economics of Climate Change focuses on the risk/benefit analysis of runaway climate change and the global policy challenges of changing to a low-carbon economy. The study makes clear that the greatest and earliest impacts of unchecked global warming will be upon the poorest nations, dramatically transforming the physical and political geography of our planet.
Sir Nicholas himself portrays the report as "essentially optimistic," because "there is still time to avoid the worst impacts of climate change, if we act now and internationally. * * * Strong, deliberate policy choices by governments are essential to motivate change."
Press Release re Stern Review on the Economics of Climate Change (Oct. 30, 2006)
An index of the elements of the Stern Review of the Economics of Climate Change is available here: Stern Review Index page, which includes links to his presentation slides, comments on the report by other economists, supporting research.
Link to Full Report (27 chapters): Stern Review Report.
Thanks for the link to: Monday, 30 Oct 2006 | Grist | Daily Grist | 30 Oct 2006
Posted by dougsimpson at November 1, 2006 09:47 AM