The following papers analyze the Stern Review on the Economics of Climate Change, available on the web at http://www.hm-treasury.gov.uk/independent_reviews/stern_review_economics_climate_change/sternreview_index.cfm.  

The Stern Review on the Economics of Climate Change is a November 2006 report to Great Britain's  Prime Minister and Chancellor of the Exchequer on the economics of climate change.  The report includes an in depth analysis of the impacts of climate change on growth and development, the economics of stabilization, policy responses for mitigation, policy responses for adaptation, international collective action and a variety of technical annexes.

The report concludes that, inter alia,

 "The scientific evidence is now overwhelming: climate change is a serious global threat, and it demands an urgent global response.

"Using the results from formal economic models, the Review estimates that if we don’t act, the overall costs and risks of climate change will be equivalent to losing at least 5% of global GDP each year, now and forever. If a wider range of risks and impacts is taken into account, the estimates of damage could rise to 20% of GDP or more.

"In contrast, the costs of action – reducing greenhouse gas emissions to avoid the worst impacts of climate change – can be limited to around 1% of global GDP each year.

"Climate change is the greatest market failure the world has ever seen, and it interacts with other market imperfections. Three elements of policy are required for an effective global response. The first is the pricing of carbon, implemented through tax, trading or regulation. The second is policy to support innovation and the deployment of low-carbon technologies. And the third is action to remove barriers to energy efficiency, and to inform, educate and persuade individuals about what they can do to respond to climate change."