Nicholas Stern, Baron Stern of Brentford, gained international prominence for his 2006 government report on the economic consequences of climate change. A specialist in environmental and development economics, he has served in high-level financial institutions and academic roles, shaping global policy discussions regarding greenhouse gas emissions, market failures, and the cost of mitigating environmental damage to the global economy.
Academic Foundations and Early Career
Born in Hammersmith, London, in 1946, Stern attended Latymer Upper School before studying the Mathematical Tripos at Peterhouse, Cambridge, graduating in 1967. He later earned his Doctor of Philosophy at Nuffield College, Oxford, under the supervision of James Mirrlees. His early professional life involved teaching at the University of Oxford from 1970 to 1977 and later as a professor of economics at the University of Warwick between 1978 and 1987. During the late 1980s and early 1990s, he held a faculty position at the London School of Economics.
Twenty questions, eight minutes on the clock, and a percentile measured against everyone who has taken it. No sign-up.
Take the IQ test →Institutional Roles and Government Service
Stern transitioned into international finance, serving as Chief Economist and Special Counsellor to the President of the European Bank for Reconstruction and Development from 1994 to 1999. In 2000, he became Chief Economist and Senior Vice-president of the World Bank. In 2003, he joined HM Treasury as second permanent secretary, leading the Government Economic Service under Gordon Brown. His work frequently intersected with public finance, development studies in Africa, and the economic evaluation of environmental risks.
The Stern Review and Climate Economics
Commissioned in 2005 to analyze the economics of climate change, Stern led a team that released its findings in October 2006. The report identified climate change as an economic externality, characterizing it as the largest market failure ever observed. He proposed that immediate investment in emissions reductions could manage the risks of future economic damage. While his report influenced global environmental policy, it also faced technical critique from other economists regarding his choice of discount rates and the methodology used to calculate long-term climate damages.
Current Affiliations and Professional Recognition
Since 2007, Stern has served as a member of the House of Lords. He holds the I. G. Patel Chair at the London School of Economics and chairs the Grantham Research Institute on Climate Change and the Environment. His extensive academic career is marked by fellowships at the Royal Society, the British Academy, and the Econometric Society. Numerous organizations have recognized his contributions, including the receipt of the Blue Planet Prize in 2009, the BBVA Foundation Frontiers of Knowledge Award in 2010, and the Leontief Prize in 2011.
Fast facts
- Born: 1946, London
- Education: Peterhouse, Cambridge; Nuffield College, Oxford
- Current position: Member of the House of Lords (2007)
- Notable role: Chair of the Grantham Research Institute
- Key publication: The Stern Review (2006)
- Fellowships: Royal Society, British Academy, Econometric Society
- Major award: Blue Planet Prize (2009)
Questions readers ask
What was the main conclusion of the Stern Review?
The review concluded that climate change is a fundamental market failure and that immediate investment in emissions reduction is necessary to avoid significant economic damage.
Which academic institutions has Nicholas Stern been associated with?
He has held positions at the University of Oxford, the University of Warwick, and the London School of Economics.
Achievements
- Blue Planet Prize — 2009
- Patron’s Medal — 2009
- Leontief Prize for Advancing the Frontiers of Economic Thought — 2011
- Affiliated with London School of Economics and Political Science and Grantham Research Institute on Climate Change and the Environment
- Educated at Peterhouse and Nuffield College
