Introducing his new book, Why Are We Waiting? The Logic, Urgency and Promise of Tackling Climate Change Professor Stern outlines why the transition to a low-carbon economy and rapid structural transformations to the world economy provide a story of growth and poverty reduction that is attractive and sustainable.
Stern is the author of the Stern Review – the most comprehensive and authoritative report on climate change from an Economics perspective.
Stern’s argument follows three tracks.
- Firstly, he points out the fallacies in the context of the consequences of global warming of traditional cost-benefit analyses in which the results rely on market interest rates to discount future benefits.
- Secondly he bases his argument on an insurance model which calls for the payment of a relatively small premium in order to avoid a possible catastrophic loss.
- Thirdly, he argues that investments in energy transformation could form the basis of kick-starting economic growth.
Nicholas Stern is IG Patel Professor and Chair of the Grantham Research Institute on Climate Change and the Environment at LSE and President of the British Academy. (Recorded 3 June 2015 at LSE).