Reviewing The Stern Review

Yestarday, the UK government released the Stern Review Report on the Economics of Climate Change by Sir Nicholas Stern. At a glance, it appears to be an excellent, encyclopedic reference on the topic. I'm tempted to call this the biggest event since Warren Buffett announced his massive donations to the Gates Foundation. To help us review the report further, I've skimmed through the Executive Summary (pdf) and pulled what I found to be the key quotes. The document is well-organized, so going to a quote's page will give you further detail on that topic. Also, here is a rebuttal of the Stern Review from the Telegraph and a rebuttal of the rebuttal from a RealClimate comment thread. (RealClimate may post on it shortly, in which case I'll change the link to that.)

"The Review first examines the evidence on the economic impacts of climate change itself, and explores the economics of stabilising greenhouse gases in the atmosphere. The second half of the Review considers the complex policy challenges involved in managing the transition to a low-carbon economy and in ensuring that societies can adapt to the consequences of climate change that can no longer be avoided." (p.1)

"Climate change presents a unique challenge for economics: it is the greatest and widest-ranging market failure ever seen." (p.1)

"...the evidence gathered by the Review leads to a simple conclusion: the benefits of strong, early action considerably outweigh the costs." (p.2)

The evidence shows that ignoring climate change will eventually damage economic growth. Our actions over the coming few decades could create risks of major disruption to economic and social activity, later in this century and in the next, on a scale similar to those associated with the great wars and the economic depression of the first half of the 20th century. And it will be difficult or impossible to reverse these changes. Tackling climate change is the pro-growth strategy for the longer term, and it can be done in a way that does not cap the aspirations for growth of rich or poor countries. The earlier effective action is taken, the less costly it will be.

At the same time, given that climate change is happening, measures to help people adapt to it are essential. And the less mitigation we do now, the greater the difficulty of continuing to adapt in future.

(p.2)

"Climate change threatens the basic elements of life for people around the world - access to water, food production, health, and use of land and the environment." (p.6)

"The impacts of climate change are not evenly distributed - the poorest countries and people will suffer earliest and most. And if and when the damages appear it will be too late to reverse the process." (p.7)

"Integrated assessment models provide a tool for estimating the total impact on the economy; our estimates suggest that this is likely to be higher than previously suggested." (p.8)

"Emissions have been, and continue to be, driven by economic growth; yet stabilisation of greenhouse-gas concentrations in the atmosphere is feasible and consistent with continued growth." (p.11)

"The Review estimates the annual costs of stabilisation at 500-550ppm CO2e to be around 1% of GDP by 2050 - a level that is significant but manageable." (p.12)

"Delay in taking action on climate change would make it necessary to accept both more climate change and, eventually, higher mitigation costs." (p.15)

"Policy to reduce emissions should be based on three essential elements: carbon pricing, technology policy, and removal of barriers to behavioural change." (p.18)

"Adaptation policy is crucial for dealing with the unavoidable impacts of climate change, but it has been under-emphasised in many countries." (p.21)

"An effective response to climate change will depend on creating the conditions for international collective action." (p.22)

"Creating a broadly similar carbon price signal around the world, and using carbon finance to accelerate action in developing countries, are urgent priorities for international co-operation." (p.23)

"Curbing deforestation is a highly cost-effective way of reducing greenhouse gas emissions." (p.25)