Nicholas Stern, Baron Stern Of Brentford
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Nicholas Herbert Stern, Baron Stern of Brentford, (born 22 April 1946), is a British economist, banker, and academic. He is the IG Patel Professor of Economics and Government and Chair of the Grantham Research Institute on Climate Change and the Environment at the
London School of Economics The London School of Economics and Political Science (LSE), established in 1895, is a public research university in London, England, and a member institution of the University of London. The school specialises in the social sciences. Founded ...
(LSE), and 2010 Professor of Collège de France. He was President of the
British Academy The British Academy for the Promotion of Historical, Philosophical and Philological Studies is the United Kingdom's national academy for the humanities and the social sciences. It was established in 1902 and received its royal charter in the sa ...
from 2013 to 2017, and was elected
Fellow of the Royal Society Fellowship of the Royal Society (FRS, ForMemRS and HonFRS) is an award granted by the Fellows of the Royal Society of London to individuals who have made a "substantial contribution to the improvement of natural science, natural knowledge, incl ...
in 2014.


Education

After attending
Latymer Upper School Latymer Upper School is a public school in Hammersmith, London, England, on King Street. It derives from a charity school, and is part of the same 1624 Latymer Foundation, from a bequest by the English legal official Edward Latymer. There ...
, Stern studied the
Mathematical Tripos The Mathematical Tripos is the mathematics course that is taught in the Faculty of Mathematics, University of Cambridge, Faculty of Mathematics at the University of Cambridge. Origin In its classical nineteenth-century form, the tripos was a di ...
and was awarded a
Bachelor of Arts A Bachelor of Arts (abbreviated B.A., BA, A.B. or AB; from the Latin ', ', or ') is the holder of a bachelor's degree awarded for an undergraduate program in the liberal arts, or, in some cases, other disciplines. A Bachelor of Arts deg ...
degree in maths at
Peterhouse, Cambridge Peterhouse is the oldest Colleges of the University of Cambridge, constituent college of the University of Cambridge in England, founded in 1284 by Hugh de Balsham, Bishop of Ely. Peterhouse has around 300 undergraduate and 175 graduate stud ...
in 1967. In 1971, his DPhil in economics at Nuffield College, Oxford, with thesis on the rate of
economic development In economics, economic development (or economic and social development) is the process by which the economic well-being and quality of life of a nation, region, local community, or an individual are improved according to targeted goals and object ...
and the theory of optimum planning, was supervised by
James Mirrlees Sir James Alexander Mirrlees (5 July 1936 – 29 August 2018) was a British economist and winner of the 1996 Nobel Memorial Prize in Economic Sciences. He was knighted in the 1997 Birthday Honours. Early life and education Born in Minniga ...
, winner of the Nobel Prize in Economics in 1996.


Career and research


1970–2007

He was a lecturer at the
University of Oxford The University of Oxford is a collegiate university, collegiate research university in Oxford, England. There is evidence of teaching as early as 1096, making it the oldest university in the English-speaking world and the List of oldest un ...
from 1970 to 1977 and served as a professor of economics at the
University of Warwick The University of Warwick ( ; abbreviated as ''Warw.'' in post-nominal letters) is a public research university on the outskirts of Coventry between the West Midlands and Warwickshire, England. The university was founded in 1965 as part of ...
from 1978 to 1987. From 1986 to 1993 he taught at the
London School of Economics The London School of Economics and Political Science (LSE), established in 1895, is a public research university in London, England, and a member institution of the University of London. The school specialises in the social sciences. Founded ...
, becoming the Sir
John Hicks Sir John Richard Hicks (8 April 1904 – 20 May 1989) was a British economist. He is considered one of the most important and influential economists of the twentieth century. The most familiar of his many contributions in the field of economics ...
Professor of Economics. From 1994 until 1999 he was the Chief Economist and Special Counsellor to the President of the
European Bank for Reconstruction and Development The European Bank for Reconstruction and Development, shortened to EBRD ( French: ''Banque européenne pour la reconstruction et le développement'' or ''BERD''), is an international financial institution founded in 1991 in Paris. As a multilat ...
. His research focused on
economic development In economics, economic development (or economic and social development) is the process by which the economic well-being and quality of life of a nation, region, local community, or an individual are improved according to targeted goals and object ...
and growth, and he also wrote books on
Kenya Kenya, officially the Republic of Kenya, is a country located in East Africa. With an estimated population of more than 52.4 million as of mid-2024, Kenya is the 27th-most-populous country in the world and the 7th most populous in Africa. ...
and the Green Revolution in India. Since 1999, he has been a member of the International Advisory Council of the Center for Social and Economic Research (CASE). From 1999 until 2000 Stern was Chairman of the consultancy London Economics founded by John Kay. From 2000 to 2003 he was the Chief Economist and Senior Vice-president of the World Bank. Stern was then recruited by
Gordon Brown James Gordon Brown (born 20 February 1951) is a British politician who served as Prime Minister of the United Kingdom and Leader of the Labour Party (UK), Leader of the Labour Party from 2007 to 2010. Previously, he was Chancellor of the Ex ...
, then
Chancellor of the Exchequer The chancellor of the exchequer, often abbreviated to chancellor, is a senior minister of the Crown within the Government of the United Kingdom, and the head of HM Treasury, His Majesty's Treasury. As one of the four Great Offices of State, t ...
, to work for the British government where, in 2003, he became second permanent secretary at
HM Treasury His Majesty's Treasury (HM Treasury or HMT), and informally referred to as the Treasury, is the Government of the United Kingdom’s economic and finance ministry. The Treasury is responsible for public spending, financial services policy, Tax ...
, initially with responsibility for public finances, and head of the Government Economic Service. Having also been Director of Policy and Research for the Commission for Africa, in July 2005 he was appointed to conduct reviews on the economics of
climate change Present-day climate change includes both global warming—the ongoing increase in Global surface temperature, global average temperature—and its wider effects on Earth's climate system. Climate variability and change, Climate change in ...
and also of development, which led to the publication of the Stern Review. At the time, he ceased to be a second permanent secretary at the Treasury, though he retained the rank until retirement in 2007; the review team he headed was based in the
Cabinet Office The Cabinet Office is a Departments of the Government of the United Kingdom, ministerial department of the Government of the United Kingdom. It is responsible for supporting the Prime Minister of the United Kingdom, prime minister and Cabinet ...
. It was reported that Stern's time at the Treasury was marked by tensions with his boss, Gordon Brown:
... several
Whitehall Whitehall is a road and area in the City of Westminster, Central London, England. The road forms the first part of the A roads in Zone 3 of the Great Britain numbering scheme, A3212 road from Trafalgar Square to Chelsea, London, Chelsea. It ...
sources told ''
The Times ''The Times'' is a British Newspaper#Daily, daily Newspaper#National, national newspaper based in London. It began in 1785 under the title ''The Daily Universal Register'', adopting its modern name on 1 January 1788. ''The Times'' and its si ...
'' that Mr Brown did not like some of the advice he received from Sir Nicholas, including some "home truths" about long-term trends in the economy and he never broke into the chancellor's tight-knit inner circle. ... He subsequently lacked a real role and spent most of his time working on major international reports on global warming and alleviating poverty in Africa. His doom-laden report on the risks of failing to address
climate change Present-day climate change includes both global warming—the ongoing increase in Global surface temperature, global average temperature—and its wider effects on Earth's climate system. Climate variability and change, Climate change in ...
, published in October, caused tensions within the Government by triggering a debate on environmental taxes and leading to calls for big policy changes.


The Stern Review (2005—2006)

The '' Stern Review Report on the Economics of Climate Change'' was produced by a team led by Stern at HM Treasury, and was released in October 2006. In the review,
climate change Present-day climate change includes both global warming—the ongoing increase in Global surface temperature, global average temperature—and its wider effects on Earth's climate system. Climate variability and change, Climate change in ...
is described as an economic
externality In economics, an externality is an Indirect costs, indirect cost (external cost) or indirect benefit (external benefit) to an uninvolved third party that arises as an effect of another party's (or parties') activity. Externalities can be conside ...
, which is a type of
market failure In neoclassical economics, market failure is a situation in which the allocation of goods and services by a free market is not Pareto efficient, often leading to a net loss of economic value.Paul Krugman and Robin Wells Krugman, Robin Wells (2006 ...
. Stern has subsequently referred to the climate change externality as the largest ever market failure:
Climate change is a result of the greatest market failure the world has seen. The evidence on the seriousness of the risks from inaction or delayed action is now overwhelming ... The problem of climate change involves a fundamental failure of markets: those who damage others by emitting greenhouse gases generally do not pay
Regulation, carbon taxes and
carbon trading Carbon emission trading (also called carbon market, emission trading scheme (ETS) or cap and trade) is a type of emissions trading scheme designed for carbon dioxide (CO2) and other greenhouse gases (GHGs). A form of carbon pricing, its purpose ...
, along with pollution permits and property rights, are recommended to reduce
greenhouse gas emissions Greenhouse gas (GHG) emissions from human activities intensify the greenhouse effect. This contributes to climate change. Carbon dioxide (), from burning fossil fuels such as coal, petroleum, oil, and natural gas, is the main cause of climate chan ...
. It is argued that the world economy can lower its greenhouse gas emissions at a significant but manageable cost. The review concludes that immediate reductions of greenhouse gas emissions are necessary to reduce the worst risks of climate change. The review's conclusions were widely reported in the press. Stern's relatively large cost estimates of 'business-as-usual' climate change damages received particular attention. These are the estimated damages that might occur should no further effort be made to cut greenhouse gas emissions. There has been a mixed reaction to the Stern Review from economists. Several economists have been critical of the review, for example, a paper by Byatt et al. (2006) describes the review as "deeply flawed". Some have supported the Review, while others have argued that Stern's conclusions are reasonable, even if the method by which he reached them is incorrect. The Stern Review team has responded to criticisms of the review in several papers. Stern has also gone on to say that he underestimated the risks of climate change in the Stern Review. Stern's approach to
discounting In finance, discounting is a mechanism in which a debtor obtains the right to delay payments to a creditor, for a defined period of time, in exchange for a charge or fee.See "Time Value", "Discount", "Discount Yield", "Compound Interest", "Effici ...
has been debated amongst economists. The discount rate allows economic effects occurring at different times to be compared. Stern used a discount rate in his calculation of the effects of "business-as-usual" climate change damages. A high discount rate reduces the calculated benefit of reducing greenhouse gas emissions. Using too low a discount rate wastes resources because it will result in too much investment in cutting emissions (Arrow ''et al.'', 1996, p. 130). Too high a discount rate will have the opposite effect, and lead to under-investment in cutting emissions. Most studies on the damages of climate change use a higher discount rate than that used in the Stern Review. Some economists support Stern's choice of discount rate (Cline, 2008; Shah, 2008 Heal, 2008) while others are critical (Yohe and Tol, 2008; Nordhaus, 2007). Another criticism of the Stern Review is that it is a political rather than an analytical document. Writing in the
Daily Telegraph ''The Daily Telegraph'', known online and elsewhere as ''The Telegraph'', is a British daily broadsheet conservative newspaper published in London by Telegraph Media Group and distributed in the United Kingdom and internationally. It was foun ...
newspaper, columnist Charles Moore compared the Stern Review to the UK Government's " dodgy dossier" on Iraqi
weapons of mass destruction A weapon of mass destruction (WMD) is a Biological agent, biological, chemical weapon, chemical, Radiological weapon, radiological, nuclear weapon, nuclear, or any other weapon that can kill or significantly harm many people or cause great dam ...
.


2007—present

In a speech given in 2007 at the Australian National Press Club, Stern called for one per cent of gross global product to be employed in
global warming Present-day climate change includes both global warming—the ongoing increase in global average temperature—and its wider effects on Earth's climate system. Climate change in a broader sense also includes previous long-term changes ...
-related environmental measures. He also joined the Cool Earth advisory board. In 2009, Stern linked recovery from the global economic crisis with an effective response to climate change. His book, ''Blueprint for a Safer Planet'', was published in April 2009. In June 2007, Stern became the first holder of the I. G. Patel Chair at the
London School of Economics The London School of Economics and Political Science (LSE), established in 1895, is a public research university in London, England, and a member institution of the University of London. The school specialises in the social sciences. Founded ...
. In 2007, Nicholas Stern joined IDEAglobal as vice-chairman. In 2008, he was appointed Chair of the Grantham Research Institute on Climate Change and the Environment, a major new research centre also at LSE. He is Chair of the Centre for Climate Change Economics and Policy at Leeds University and LSE. Stern is co-chair of the Global Commission for the Economy and Climate, with
Ngozi Okonjo-Iweala Ngozi Okonjo-Iweala (; born 13 June 1954) is a Nigerian economist, who has been serving as the Director-General of the World Trade Organization since March 2021. She is the first woman and first African to lead the World Trade Organization as d ...
and Paul Polman. In 2009, he published the non-fiction literary work, ''The Global Deal: Climate Change and the Creation of a New Era of Progress and Prosperity''. The book examines climate change from an economist's perspective, and outlines the necessary steps toward achieving global economic growth while managing climate change. In 2009, he also became a member of the International Advisory Council of the Chinese
sovereign wealth fund A sovereign wealth fund (SWF), or sovereign investment fund, is a state-owned investment fund that invests in real and financial assets such as stocks, Bond (finance), bonds, real estate, precious metals, or in alternative investments such as ...
China Investment Corporation China Investment Corporation (CIC) is a sovereign wealth fund that manages part of China's foreign exchange reserves. China's largest sovereign fund, CIC was established in 2007 with about US$200 billion of assets under management. In Mar ...
. Stern is an advocate of vegetarianism as a
climate change mitigation Climate change mitigation (or decarbonisation) is action to limit the greenhouse gases in the atmosphere that cause climate change. Climate change mitigation actions include energy conservation, conserving energy and Fossil fuel phase-out, repl ...
element. He is a member of the scientific committee of th
Fundacion IDEAS
Spain's Socialist Party's think tank. In 2015, he was co-author of the report that launched the
Global Apollo Programme The Global Apollo Programme was a historic call for a major global science and economics research programme to make Renewable energy, carbon-free Base load power plant, baseload electricity less costly than Fossil fuel power station, electricity fro ...
, which calls for developed nations to commit to spending 0.02% of their GDP for 10 years, to fund co-ordinated research to make carbon-free baseload electricity less costly than electricity from coal by the year 2025. After the successful
United Nations Climate Change Conference The United Nations Climate Change Conferences are yearly conferences held in the framework of the United Nations Framework Convention on Climate Change (UNFCCC). They serve as the formal meeting of the UNFCCC parties – the conference of the par ...
in Paris (mid-December 2015), Stern appeared optimistic, saying, "If we get this right, it will be more powerful than the
Industrial Revolution The Industrial Revolution, sometimes divided into the First Industrial Revolution and Second Industrial Revolution, was a transitional period of the global economy toward more widespread, efficient and stable manufacturing processes, succee ...
. A green race is going on." He also said In November 2015 he was commissioned by the UK Minister of Universities and Science, Jo Johnson, to chair a review of the Research Excellence Framework (REF) that is used in assessing the research performance of universities and research institutes in the UK. The report was published in July 2016. In October2021, Stern released a working paper stating that economists had grossly undervalued young lives in relation to the climate crisis. The manuscript is due to be published in the '' Economic Journal'' of the
Royal Economic Society The Royal Economic Society (RES) is a professional association and learned society that promotes the study of economics. Originally established in 1890 as the British Economic Association, it was incorporated by royal charter on 2 December 1902. ...
.


Awards and honours

Stern was elected a Fellow of the
British Academy The British Academy for the Promotion of Historical, Philosophical and Philological Studies is the United Kingdom's national academy for the humanities and the social sciences. It was established in 1902 and received its royal charter in the sa ...
in 1993; he is also an Honorary Fellow of the
American Academy of Arts and Sciences The American Academy of Arts and Sciences (The Academy) is one of the oldest learned societies in the United States. It was founded in 1780 during the American Revolution by John Adams, John Hancock, James Bowdoin, Andrew Oliver, and other ...
and a Foreign Honorary Member of both the
American Economic Association The American Economic Association (AEA) is a learned society in the field of economics, with approximately 23,000 members. It publishes several peer-reviewed journals, including the Journal of Economic Literature, American Economic Review, an ...
and the
American Philosophical Society The American Philosophical Society (APS) is an American scholarly organization and learned society founded in 1743 in Philadelphia that promotes knowledge in the humanities and natural sciences through research, professional meetings, publicat ...
. In the 2004 Queen's Birthday Honours he was made a
Knight Bachelor The title of Knight Bachelor is the basic rank granted to a man who has been knighted by the monarch but not inducted as a member of one of the organised Order of chivalry, orders of chivalry; it is a part of the Orders, decorations, and medals ...
, for services to Economics. On 18 October 2007, it was announced that Stern would receive a
life peer In the United Kingdom, life peers are appointed members of the peerage whose titles cannot be inherited, in contrast to hereditary peers. Life peers are appointed by the monarch on the advice of the prime minister. With the exception of the D ...
age and was to be made a non-party political peer (i.e. would sit as a cross-bencher in the
House of Lords The House of Lords is the upper house of the Parliament of the United Kingdom. Like the lower house, the House of Commons of the United Kingdom, House of Commons, it meets in the Palace of Westminster in London, England. One of the oldest ext ...
). He was duly created Baron Stern of Brentford, ''of Elsted in the County of West Sussex and of
Wimbledon Wimbledon most often refers to: * Wimbledon, London, a district of southwest London * Wimbledon Championships, the oldest tennis tournament in the world and one of the four Grand Slam championships Wimbledon may also refer to: Places London * W ...
in the
London Borough of Merton The London Borough of Merton () is a London borough in London, England. The borough was formed under the London Government Act 1963 in 1965 by the merger of the Municipal Borough of Mitcham, the Municipal Borough of Wimbledon and the Merton ...
'' on 10 December 2007. He is, however, usually addressed as Lord Stern, or Lord Stern of Brentford. In 2006, he was elected as an Honorary Fellow at Peterhouse, Cambridge, and he is also an Honorary Fellow of St Catherine's College, Oxford. Stern was awarded an honorary Doctor of Science degree by the
University of Warwick The University of Warwick ( ; abbreviated as ''Warw.'' in post-nominal letters) is a public research university on the outskirts of Coventry between the West Midlands and Warwickshire, England. The university was founded in 1965 as part of ...
in 2006, an Honorary Doctor of International Relations degree in 2007 by the Geneva School of Diplomacy and International Relations, a for-profit business whose lack of university accreditation has put it under the spotlight of the news media, an Honorary Doctor of Letters by the
University of Sheffield The University of Sheffield (informally Sheffield University or TUOS) is a public university, public research university in Sheffield, South Yorkshire, England. Its history traces back to the foundation of Sheffield Medical School in 1828, Fir ...
in 2008, an Honorary Doctor by the
Technische Universität Berlin (TU Berlin; also known as Berlin Institute of Technology and Technical University of Berlin, although officially the name should not be translated) is a public university, public research university located in Berlin, Germany. It was the first ...
in 2009 and also in 2009 an honorary degree of Doctor of Science from the University of Brighton. In 2009, Stern was also awarded the Blue Planet Prize for his contributions to research on global environmental problems. Stern participated in one of the showings of '' The Age of Stupid'' at the RSA. At the after-showing webcast panel discussion was director Franny Armstrong, journalist George Monbiot, and the
Met Office The Met Office, until November 2000 officially the Meteorological Office, is the United Kingdom's national weather and climate service. It is an executive agency and trading fund of the Department for Science, Innovation and Technology and ...
head of climate impacts Richard Betts. In 2009 Nicholas Stern lent his support to the 10:10 project, a movement encouraging people to take positive action on climate change by reducing their carbon emissions. Stern received the 2010 BBVA Foundation Frontiers of Knowledge Award in the category of Climate Change for his "pioneering report
hat A hat is a Headgear, head covering which is worn for various reasons, including protection against weather conditions, ceremonial reasons such as university graduation, religious reasons, safety, or as a fashion accessory. Hats which incorpor ...
shaped and focused the discourse on the economics of climate change" and provided "a unique and robust basis for decision-making." On 11 December 2013, Stern was awarded the 2013 Stephen H. Schneider Award for Outstanding Climate Science Communication b
Climate One
a
The Commonwealth Club
in San Francisco, California. Stern was elected a Fellow of the Royal Society (FRS) in 2014 One or more of the preceding sentences incorporates text from the royalsociety.org website where: in recognition of his work challenging the world view on the economics of climate change. In 2016, he was elected a
Fellow of the Academy of Social Sciences The Fellowship of the Academy of Social Sciences (FAcSS) is an award granted by the Academy of Social Sciences to leading academics, policy-makers, and practitioners of the social sciences. Fellows were previously known as Academicians and used t ...
(FAcSS). Stern was appointed Member of the Order of the Companions of Honour (CH) in the
2017 Birthday Honours The 2017 Queen's Birthday Honours were appointments by some of the 16 Commonwealth realms of Queen Elizabeth II to various orders and honours to reward and highlight good works by citizens of those countries. The Birthday Honours were awarded a ...
for services to economics, international relations, and tackling climate change. The Kiel Institute for the World Economy announced, that Stern will be awarded the Bernhard Harms Prize 2021.


Personal life

Stern is the son of the late Bert Stern and Marion Stern and nephew of Donald Swann—half of the Flanders and Swann partnership. Richard Stern, former vice-president of the
World Bank The World Bank is an international financial institution that provides loans and Grant (money), grants to the governments of Least developed countries, low- and Developing country, middle-income countries for the purposes of economic development ...
, and Brian E Stern, former vice-president of
Xerox Corporation Xerox Holdings Corporation (, ) is an American corporation that sells print and digital document products and services in more than 160 countries. Xerox was the pioneer of the photocopier market, beginning with the introduction of the Xerox ...
, are his brothers, and his sister is Naomi Opalinska.


Works

* ''A Strategy for Development'', World Bank Publications, 2002 (). * ''The Economics of Climate Change: The Stern Review'',
Cambridge University Press Cambridge University Press was the university press of the University of Cambridge. Granted a letters patent by King Henry VIII in 1534, it was the oldest university press in the world. Cambridge University Press merged with Cambridge Assessme ...
, 2007 (). * ''A Blueprint for a Safer Planet: How to Manage Climate Change and Create a New Era of Progress and Prosperity'', Bodley Head, PublicAffairs, 2009 (). * ''The Global Deal: Climate Change and the Creation of a New Era of Progress and Prosperity'', 2009 (). * ''Why Are We Waiting? The Logic, Urgency, and Promise of Tackling Climate Change'',
MIT Press The MIT Press is the university press of the Massachusetts Institute of Technology (MIT), a private research university in Cambridge, Massachusetts. The MIT Press publishes a number of academic journals and has been a pioneer in the Open Ac ...
, 2015 ().


References


Further reading


Personal Website

Lord Stern of Brentford – LSE Experts entry

World Bank biography

Lord Stern of Brentford, FBA at CSA Celebrity Speakers

Stern at the University of Oxford

The man behind the British Treasury’s mammoth climate change report



Article about the Stern review's conclusions on China's development

Nicholas Stern interview at The Beaver, 13 February 2007

Speech to the Economics of Climate Change Symposium, Nov 2006

'Green Routes To Growth' article published in the Guardian.co.uk's Comment Is Free Section, 23 October 2008


, - , - {{DEFAULTSORT:Stern, Nicholas 1946 births Academics of the London School of Economics Alumni of Nuffield College, Oxford Alumni of Peterhouse, Cambridge British officials of the United Nations Center for Global Development Climate economists Crossbench life peers English civil servants English economists Environmental economists Fellows of the Academy of Social Sciences Fellows of the American Academy of Arts and Sciences Fellows of the British Academy Fellows of the Econometric Society Fellows of the Royal Society Global Apollo Programme Knights Bachelor Living people English people of German-Jewish descent Members of HM Government Economic Service Members of the Order of the Companions of Honour People educated at Latymer Upper School People from Hammersmith Peers recommended by the House of Lords Appointments Commission Permanent Secretaries of the Cabinet Office Recipients of the Royal Geographical Society Patron's Medal Second Permanent Secretaries of HM Treasury British sustainability advocates Trustees of the British Museum World Bank Chief Economists Life peers created by Elizabeth II International members of the American Philosophical Society