Bilal Javed Jafrani

10021
January 5, 2018
The Economics of Climate Change (Stern)
The Stern review aims at making us aware that climate change is a pressing issue and tells us
how it affects the economics models that we currently use. The aim is to call to action the top
minds of our time from all over the globe to perform extensive research and come up with the
best mitigation and/or adaption policies which can help us pull through in this inevitable
global crisis. There is a need to come up with more accurate models which can better predict
the impact of mitigation strategies on the reduction of climate change damage.
The report starts by telling us the adverse impacts of climate change and how increasing
temperatures will affect everyone and everything, from the polar ice caps and permafrost to
crop yields and fresh water availability in a country like Pakistan. A lot of facts are discussed
in the report, and the picture it paints is grave. Humans are heading down a path of destruction
if we continue with business-as-usual. Proper mitigation and adaption strategies have to be
implemented. Even though the issue is anthropogenic, the people responsible for greenhouse
gas emissions are not really affected by it directly.
The article continues with telling us about the uncertainty present in the economics of climate
change and suggests that complex economic models are needed which do not make disputable
assumptions. It urges the global community to collaborate and find a solution that is beneficial
for all. Growth affects the climate as the greenhouse gas emissions increase, but then climate
change (caused by increased greenhouse gas emissions) badly affects the economy as well.
Even though most of the emissions are from developed countries, it is the developing
countries that are affected the most.
Next the report tells us about the need for adaption, especially in the developing countries. As
the nature and magnitude of the effects of climate change are uncertain, it is difficult to reach
a consensus about the amount of capital to be used in adaption strategies. For mitigation we
need to have clear cut policies and the private sector would have to be onboard. A policy
framework is important in devising the most cost-effective policies. We must know the proper
costs and the impacts before investing in these strategies.
The final part deals with uncertainty in climate change predictions, and how it affects our
decision-making process. It also delays decision-making because we know we might know
more about climate change in the future. So, for how long should we wait before deciding on
a model?
In conclusion, all countries must work as one because we are all passengers on the same boat.
Countries should be concerned about the effects on others, rather than themselves only (this is
especially true for developed countries). There must be a focus on collaborative and
sustainable development in the future, with increased attention to policies regarding
mitigation and adaptation strategies. We need to consider the humans of future generations
and their needs as equal to the existing humans, otherwise we will end up delaying mitigation
efforts until it’s too late.

Sensitivity: Personal