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it is difficult for models to quantify the collapse of ecosystem. House of Commons Treasury Select Committee. Arrow analysed the Stern Review's conclusions by looking at the Review's central estimate of GHG stabilisation costs of 1 GNP, and high-end climate damages of 20 GNP (Arrow, 2007a,. . 61 She showed that the rates of PTP and risk aversion in the Stern Review are consistent with saving rates of 2532 rather than.5 when a macroeconomic model with the production function actually used by Stern and Nordhaus is used. Edu uses cookies to personalize content, tailor ads and improve the user experience. Retrieved b Yale Symposium (February 2007).

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More conventional discount rates used in other global-warming analyses the Review's dramatic results would disappear. 2 of this source) Adapted from a portion of Figure 1 in Tol and Yohe (2006) "A Review of the Stern Review" World Economics 7 (4 23350. Partha Dasgupta has criticised the Stern Review for parametric choices that, he argues, are inadequately sensitive to inequality. Martin optissimo sconto cralos Weitzman (2007) 11 and Dieter Helm (2008). This is one reason for the intemperate response from some traditional economists to the Stern Review Eric Neumayer (2007) of the London School of Economics thought that the Review could have argued for emission reductions based on the non-substitutable loss of natural capital. The higher rates preferred by Stern's critics are closer to the weighted average cost of capital for private investment; see the extensive review by Frederick.

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