Stern on the inadequacies of economic modelling of climate change

Climate change will ‘cost world far more than estimated’ - Climate Change - Environment - The Independent

Just as I suspected:

Lord Stern, who wrote a hugely influential review on the financial
implications of climate change in 2006, says the economic models that
have been used to calculate the fiscal fallout from climate change are
woefully inadequate and severely underestimate the scale of the threat....

Professor Stern and his colleague Dr Simon Dietz will today publish the
peer-reviewed findings of their research into climate change economic
modelling in the The Economic Journal.

Their review is highly critical of established economic models which,
among other things, fail to acknowledge the full breadth of climate
change’s likely impact on the economy and are predicated on assumptions
about global warming’s effect on output that are “without scientific
foundation”.

Professor Stern, whose earlier research said it is
far cheaper to tackle climate change now than in the future, added: “I
hope our paper will prompt ... economists to strive for much better
models [and] ... help policy-makers and the public recognise the
immensity of the potential risks of unmanaged climate change.”