Neumayer, Eric (2007) A missed opportunity: the Stern review on climate change fails to tackle the issue of non-substitutable loss of natural capital. Global Environmental Change, 17 (3/4). ISSN 0959-3780
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Abstract
The Stern Review on The Economics of Climate Change is one of the few cost-benefit analyses of climate change to come out in favour of immediate and decisive action to reduce greenhouse gas emissions. The choice of a low discount rate is the main reason for the Review’s divergence in conclusions compared to other economic studies. I argue that the Review’s ethical reasons for a low discount rate are defendable, but unlikely to find wider public support. In order to justify spending a large amount of scarce resources for the purpose of limiting climate change it is necessary to move beyond the discounting debate. Unfortunately, the Review did not develop a persuasive argument for why climate change threatens to inflict upon future generations irreversible and non-substitutable damage to and loss of natural capital. This represents a missed opportunity as it would have provided a much more compelling case for drastic action than the Review’s arguments for a low discount rate.
| Item Type: | Article |
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| Official URL: | http://www.sciencedirect.com/science/journal/09593... |
| Additional Information: | © 2007 Elsevier Ltd. |
| Library of Congress subject classification: | H Social Sciences > HC Economic History and Conditions |
| Sets: | Departments > Geography and Environment Collections > Economists Online |
| Date Deposited: | 31 Jan 2008 |
| URL: | http://eprints.lse.ac.uk/3059/ |
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