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World Economics
The Journal of Current Economic Analysis and Policy

What is the Economics of Climate Change?
by Nicholas Stern



A major review of the economics of climate change under the leadership of Professor Sir Nicholas Stern was announced at the end of July 2005, reporting to the United Kingdom’s Chancellor of the Exchequer and to the Prime Minister. The Stern Review on the Economics of Climate Change is due to report in autumn 2006. This article sets out some of the issues the review is considering.

Sir Nicholas Stern is Head of the Government Economic Service. He is also Head of the Stern Review of the Economics of Climate Change, reporting to the Prime Minister and Chancellor of the Exchequer. Sir Nicholas has been Chief Economist and Senior Vice President at the World Bank, Washington D.C. since July 2000. From 1994 until late 1999 he was Chief Economist and Special Counsellor to the President at the European Bank for Reconstruction and Development (EBRD). He spent a large part of his career in academic life as Professor in Economics at the LSE and in various research and teaching positions at Oxford and Warwick universities, the Massachusetts Institute of Technology, the Ecole Polytechnique in Paris, the Indian Statistical Institute in Bangalore and Delhi, and the People’s University of China in Beijing. He has served on committees of OXFAM, ODA, and the UN. He is also a Fellow of the British Academy and a Foreign Honorary Member of the American Academy of Arts and Sciences. Sir Nicholas holds a PhD from Oxford University (Nuffield College)


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