Monday, October 30, 2006
The Stern report
Posted by David Smith at 09:00 AM
Category: Thoughts and responses

Sir Nicholas Stern's review of the economics of climate change is published today. Notwithstanding the BBC's breathless reporting of it, I won't comment on it in detail until I've had a chance to read it. Sir Nicholas, interviewed this morning, stressed the uncertainties. One cause for concern is that he has taken the projections of the Intergovernmental Panel on Climate Change as the basis for his report. That said, the broad thrust of his report, that money spent now will save much bigger costs later, makes sense, as does his emphasis on carbon trading. Here's a link to the Stern review site, where the report will appear.

One thing I will comment on is Gordon Brown's typically gimmicky appointment of Al Gore as an adviser on this issue. He'll join other luminaries like Alan Greenspan - who of course rarely misses a day at the Treasury.

Comments

Oh come now, I expect Alanís been wearing his fingers to the bone on his Blackberry, sending hints and wrinkles to Gordon.

No less an authority than Mervyn King was extraordinarily complementary to Gordon in his recent Adam Smith lecture:
http://www.bankofengland.co.uk/publications/speeches/2006/speech288.pdf

Merv thought it was such a good idea of Gordonís to take the interest rate decision out of the hands of politicians that he suggested the same should be done for health, education, pensions and tax.

Now thatís the sort of change that could make PM Gordon a hero with the voters. ;)

Posted by: Sandid at October 30, 2006 10:11 AM

From reading the press coverage in the US via Google News, I would guess that Brown's mention of Al Gore has possibly doubled the press coverage of the Stern Review release in the USA. So it was eminently worthwhile just for that.

Philip Sargent

Posted by: Philip Sargent at October 31, 2006 11:43 AM

Good point.

Posted by: David Smith at October 31, 2006 02:01 PM