Climate change and the Stern Review: The implications for Treasury policy

This inquiry was triggered by the January 2007 publication of the 'Stern Review on the Economics of Climate Change', which stressed the need to stabilise carbon emissions sooner rather than later and warned of potentially catastrophic impacts if that was not achieved. The Review framed the climate change debate in terms of economic choices and considered the use of economic tools such as environmental taxation and permit trading schemes as economically efficient mechanisms for cutting emissions. 'Climate Change and the Stern Review: The Implications for Treasury Policy' recommends that the UK Government give primary consideration to the use of economic tools in combating climate change. The UK Treasury's policies and action in this regard were the main focus of the inquiry. The report looks at work on this topic by the Treasury and other select committees, assesses the economics of the Stern Review, and examines the Government's approach to reducing emissions. Section four considers emissions trading schemes and, in particular, the EU Emission Trading Scheme and the inclusion of airlines in the EU ETS.

United Kingdom: House of Commons: Treasury Committee: 4th Report (2007-08)HC 231 http://www.publications.parliament.uk/pa/cm200708/cmselect/cmtreasy/231/231.pdf

http://webarchive.nationalarchives.gov.uk/+/http:/www.hm-treasury.gov.uk/sternreview_index.htm http://webarchive.nationalarchives.gov.uk/+/http:/www.hm-treasury.gov.uk/sternreview_index.htm

United Kingdom: House of Commons: Treasury Committee: 8th Special Report (2007-08)HC 495 (pdf) http://www.publications.parliament.uk/pa/cm200708/cmselect/cmtreasy/495/495.pdf

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