Economist Lord Nicholas Stern discusses why traditional economics fail to capture the magnitude of threat presented by climate change, and how the discipline must adapt.

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In 2006 climate economist Nicholas Stern published the Stern Review on the Economics of Climate Change, a report that offered the first systematic examination of the costs of addressing climate change and impacts on the global economy. The report marked a fundamental shift away from climate change being viewed primarily as an issue of science, to also being one of economics.

Fifteen years later Stern looks back on that seminal report to examine how economics, and markets, have failed to grapple with the unprecedented risks posed by a changing climate, and how the profession must change to guide policy toward rapid decarbonization on a global scale. Stern’s recording took place during his visit to the Kleinman Center for Energy Policy on April 19, where he received the center’s Carnot Prize for distinguished contributions to energy policy.

Nicholas Stern is IG Patel Professor of Economics and Government at the London School of Economics, and Chair of the Grantham Research Institute on Climate Change and the Environment. 

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Energy Policy Now is produced by The Kleinman Center for Energy Policy at the University of Pennsylvania. For all things energy policy, visit kleinmanenergy.upenn.edu

Economist Lord Nicholas Stern discusses why traditional economics fail to capture the magnitude of threat presented by climate change, and how the discipline must adapt.
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In 2006 climate economist Nicholas Stern published the Stern Review on the Economics of Climate Change, a report that offered the first systematic examination of the costs of addressing climate change and impacts on the global economy. The report marked a fundamental shift away from climate change being viewed primarily as an issue of science, to also being one of economics.
Fifteen years later Stern looks back on that seminal report to examine how economics, and markets, have failed to grapple with the unprecedented risks posed by a changing climate, and how the profession must change to guide policy toward rapid decarbonization on a global scale. Stern&rsquo;s recording took place during his visit to the Kleinman Center for Energy Policy on April 19, where he received the center&rsquo;s Carnot Prize for distinguished contributions to energy policy.
Nicholas Stern is IG Patel Professor of Economics and Government at the London School of Economics, and Chair of the Grantham Research Institute on Climate Change and the Environment.&nbsp;
Related Content
<a href="https://kleinmanenergy.upenn.edu/research/publications/guidelines-for-successful-sustainable-nature-based-solutions/">Guidelines for Successful, Sustainable, Nature-Based Solutions</a> <a href="https://kleinmanenergy.upenn.edu/research/publications/guidelines-for-successful-sustainable-nature-based-solutions/">https://kleinmanenergy.upenn.edu/research/publications/guidelines-for-successful-sustainable-nature-based-solutions/</a>
<a href="https://kleinmanenergy.upenn.edu/research/publications/supply-and-demand-evolution-in-the-voluntary-carbon-credit-market/">Supply and Demand Evolution in the Voluntary Carbon Credit Market</a> <a href="https://kleinmanenergy.upenn.edu/research/publications/supply-and-demand-evolution-in-the-voluntary-carbon-credit-market/">https://kleinmanenergy.upenn.edu/research/publications/supply-and-demand-evolution-in-the-voluntary-carbon-credit-market/</a>
<a href="https://kleinmanenergy.upenn.edu/research/publications/the-essential-role-of-negative-emissions-in-getting-to-carbon-neutral/">The Role of Negative Emissions in Getting to Carbon Neutral</a> <a href="https://kleinmanenergy.upenn.edu/research/publications/the-essential-role-of-negative-emissions-in-getting-to-carbon-neutral/">https://kleinmanenergy.upenn.edu/research/publications/the-essential-role-of-negative-emissions-in-getting-to-carbon-neutral/</a>
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Energy Policy Now is produced by <a href="http://kleinmanenergy.upenn.edu/">The Kleinman Center for Energy Policy</a> at the University of Pennsylvania. For all things energy policy, visit <a href="http://kleinmanenergy.upenn.edu/">kleinmanenergy.upenn.edu</a>

Energy Policy Now offers clear talk on the policy issues that define our relationship to energy and its impact on society and the environment. The series is produced by the Kleinman Center for Energy Policy at the University of Pennsylvania and hosted by energy journalist Andy Stone. Join Andy in conversation with leaders from industry, government, and academia as they shed light on today's pressing energy policy debates.

Energy Policy Now

Energy Policy Now offers clear talk on the policy issues that define our relationship to energy and its impact on society and the environment. The series is produced by <a href="https://kleinmanenergy.upenn.edu/podcast/">the Kleinman Center for Energy Policy</a> at the University of Pennsylvania and hosted by energy journalist Andy Stone. Join Andy in conversation with leaders from industry, government, and academia as they shed light on today's pressing energy policy debates.

Economist Lord Nicholas Stern discusses why traditional economics fail to capture the magnitude of threat presented by climate change, and how the discipline must adapt.

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