Martin Wolf: In spite of sceptics, it is worth reducing climate risk

In spite of sceptics, it is worth reducing climate risk

By Martin Wolf

Published: February 6 2007 18:06 | Last updated: February 6 2007 18:06

In the public at large, including sizeable sections of the business community, a new consensus on climate change has emerged: it is happening; it is important; and something needs to be done. The publication last week of the latest assessment from the intergovernmental panel on climate change and discussions at this year’s annual meeting of the World Economic Forum in Davos made the growing agreement on all these points plain. Yet there is one group among whom dissent reigns: economists.

It was to them, above all, that Sir Nicholas Stern’s review on the Economics of Climate Change was addressed. It has failed to persuade. So much the worse for economists, the environmentally minded will declare. I disagree. Economists are trained to address the costs and benefits of alternative policies rigorously. Scientists are not.