Rt Hon Lord Lilley

    Written Parliamentary Question (WPQ)
    10.07.2008
    478 c1775-6W
    Lilley, Peter
    Carbon Emissions
    To ask the Secretary of State for Environment, Food and Rural Affairs what discussions his Department has had with Sir Nicholas Stern on the appropriate interest rate to use in calculating the costs of mitigating climate change.
    Dept for Environment, Food and Rural Affairs
    Woolas, Phil
    DEFRA officials have had discussions with the noble Lord Stern on the approach to discounting that was used in the Stern review and on the implications of the review for broader economic appraisal in Government.Prior to the publication of the Stern review, DEFRA officials attended an internal meeting at which Lord Stern provided details of the approach to discounting that was used in the Stern review. Lord Stern explained how conventional discounting methodology leads to the use of lower discount rates when assessing whether or not to take global action to avoid dangerous climate change.Subsequent to the publication of the Stern review, DEFRA officials attended an official-level meeting with Lord Stern to discuss the implications of the Stern review for broader economic appraisal in Government. For example, the Stern review has a number of implications for the tools that are used in Government to perform cost-benefit analysis-including the appropriate discount rate to use and the appropriate approach to use to value greenhouse gas emissions in cost-benefit analysis.
    217330
    04.07.2008
    10.07.2008
    House of Commons (HoC)
    Commons Chamber
    Answered
    07-08
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