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| Sir Nicholas Stern, Head of the U.K. Government Economics Service and Adviser to the Government on the economics of climate change and development. |
During a recent visit to Washington, D.C., Sir Nicholas Stern, author of the British government’s much-publicized report on the economic effects of climate change, presented a packed World Bank audience with an interesting ultimatum. He invited anyone in the room to “leave” and “not bother with climate change” if he or she agreed with any of the following statements: one, that the existing science is wrong; two, that humans are fantastically adaptive and will adjust (for example, by wearing less clothing or learning to swim); and three, that the potential effects are so far in the future that we need not worry about them. Stern then called these three perspectives absurd, reckless, and unethical, respectively.
Stern was in the United States to publicize the key messages of his groundbreaking report, The Stern Review on the Economics of Climate Change, released last October. Among other points, he emphasized that the costs of taking strong, immediate action are much lower than the damage to be avoided, that adaptation is important but not the only solution, and that climate policy should be international and urgent. Delaying the mitigation of greenhouse gas (GHG) emissions is dangerous and costly, while acting now is “good economics,” he noted.
Stern’s review concludes that appropriate steps to reduce GHGs would cost only about 1 percent of annual global gross domestic product by 2050, the type of cost, he explained, that the economy frequently absorbs. Using the language of economists, he described climate change as an “externality with a difference.” Unlike congestion or air pollution, which are often easily addressed through discrete, targeted action, he noted, climate change is global, long-term, uncertain, and potentially large and irreversible.
To achieve the mitigation necessary to avert climate disaster, well-designed carbon markets are necessary but will not be enough, Stern warns. International cooperation, the use of appropriate technology, and efforts to discourage deforestation are all critical elements, according to Stern.
This story was produced by Eye on Earth, a joint project of the Worldwatch Institute and the blue moon fund. View the complete archive of Eye on Earth stories, or contact Staff Writer Alana Herro at aherro [AT] worldwatch [DOT] org with your questions, comments, and story ideas.