A few lessons from a risky venture, the Stern report [Quelques leçons d'un essai à risque, l'évaluation des dommages climatiques par Sir Nicholas Stern]

Abstract : Drawing on an alarming diagnosis on climate change damages, the Stern Review calls for immediate and strong collective action. Many have questioned this unambiguous message on the ground of methodological and parametric options, deemed arbitrary. Above all, such options emphasize the current limits of the integrated assessment toolbox as well as the challenges for applying the frontier of economic theory to empirical studies. The present article reviews these shortcomings and draws a joint agenda for both integrated modelling and economic theory, including notably: assessing preferences for the environment, modelling singularities in damages, develop growth models with transient frictions and disequilibria and better account for uncertainties (eventuality of surprises).