A Review of the Stern Review on the Economics of Climate Change.¶
Nordhaus, W. D. (2007). A Review of the Stern Review on the Economics of Climate Change. Journal of Economic Literature, 45(3), 686-702.
Cited by¶
3 citations across 3 artifacts.
Each citation links to the sentence it supports in the citing article.
Primes¶
- Cost–Benefit Analysis
- argued for low social discount rates (~1.4%) justified by intergenerational equity concerns, while Nordhaus (2007)
This sourceCritiques Stern's ~1.4% consumption discount rate; argues for a higher market-based social discount rate; contrasts the two methodological approaches for long-horizon CBA.
Supported in partVerified against the publisher's abstract
Nordhaus's own abstract backs his critique of Stern's near-zero discount rate and his plea for marketplace-based rates, but states neither the ~1.4% figure nor an equity rationale.
“An examination of the Review's radical revision of the economics of climate change finds, however, that it depends decisively on the assumption of a near-zero time discount rate combined with a specific utility function.”
- argued for low social discount rates (~1.4%) justified by intergenerational equity concerns, while Nordhaus (2007)
- Discounting (Present Value)
- argued for low rates (~1.4%, with very low pure time preference component ρ~0.1% and growth-related component dominating) yielding high social cost of carbon; Nordhaus 2007
Supported in partVerified against the publisher's abstract
Nordhaus's abstract confirms the Stern Review's conclusions rest on a near-zero time discount rate, but it gives none of the claim's figures — 1.4%, ρ≈0.1%, or a social cost of carbon.
“An examination of the Review's radical revision of the economics of climate change finds, however, that it depends decisively on the assumption of a near-zero time discount rate combined with a specific utility function.”
- argued for low rates (~1.4%, with very low pure time preference component ρ~0.1% and growth-related component dominating) yielding high social cost of carbon; Nordhaus 2007
Mechanisms¶
- Value-Weight Sensitivity Analysis
- Under a low rate, close to the framing of the Stern Review, it passes easily; under a higher rate, nearer the approach associated with William Nordhaus, it does not.
This sourceArgues that the Stern Review’s strong immediate-action conclusion depends on a near-zero discount rate and does not survive substitution of higher market-consistent rates.
- Under a low rate, close to the framing of the Stern Review, it passes easily; under a higher rate, nearer the approach associated with William Nordhaus, it does not.
Verification¶
Does it exist? Confirmed. This work's DOI resolves to a registered record, which fixes its identity. That is all it fixes.
Does it back the claim? Read against the text for 2 of 3 citations: 2 supported in part. Each verdict is shown under its citation below, with what in the work backs the sentence.
Support is checked per citation rather than per work — the same source can be cited soundly in one article and wrongly in another. Per-citation recording began recently, so a citation with no recorded check is a gap in the record rather than evidence it went unchecked.
See how references were verified.
Links previously used in the corpus¶
Before the registry existed this work was also linked 1 other way.
Registry ID ref:1f81909d5e73 · see in the full table