The Economics of Climate Change: The Stern Review is a landmark study that was published on 30 October 2006. The Review concluded:
(click preceding link for 4-page PDF summary)
From the summary:
“Using the results from formal economic models, the Review estimates that if we don’t act, the overall costs and risks of climate change will be equivalent to losing at least 5% of global GDP each year, now and forever. If a wider range of risks and impacts is taken into account, the estimates of damage could rise to 20% of GDP or more…
“It would already be very difficult and costly to aim to stabilise at 450ppm CO2e. If we delay, the opportunity to stabilise at 500-550ppm CO2e may slip away.
Action on climate change is required across all countries, and it need not cap
the aspirations for growth of rich or poor countries.”
From the body (Chapter 10, Page 242):
“Table 10.1 shows estimated costs in 2030 for stabilisation at 450ppm CO2. This corresponds with approximately 500-550ppm CO2e, assuming adjustments in the emissions of other gases such that, at stabilisation, 10-20% of total CO2e will be composed of non-CO2 gases (see Chapter 8).”
(Chapter 10, Page 244):
“The Barker study found that the inclusion of induced technical change could lower the estimated costs of stabilisation by one or two percentage points of GDP by 2030 (see table 10.1). All the main studies found that the availability of a non-GHG ‘backstop’ (see above) lowered predicted costs if the option came into play. Chapter 16 shows that climate policies are necessary to provide the incentive for low-GHG technologies. Without a ‘loud, legal and long’ carbon price signal, in addition to direct support for R&D, the technologies will not emerge with sufficient impact (see Part IV). ”
Read the Stern Review here.
And hear Lord Nicolas Stern’s 10 year review of his report (approximately 2016) on this YouTube link.
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