1. Costing and pricing the planet… Mainly drawn from Stern Review report, notably chapters 2A and 6 Scenario (e.g. Business as Usual OR a stabilisation level) Attribute values to these Project future levels of economic activity and social benefits Factor these in ‘present day’ terms = Discounting Utility today Total utility Compare scenarios Implement best

2. Conventional (market) discounting assumes there is some larger market against which to trade!

3. Discount factor Uncertainty as to discount rate Take average of discount factor  equivalent to decreasing discount rate with time Cf UK Treasury ‘green book’

4. Stern Approach (more proposed than implemented) 1.The human race might not survive anyway: nuclear holocaust, asteroid impact, supervolcanoes …. % No other discounting – controversial 3. Results generally expressed as equivalent permanent reduction in GDP 2.Rate future gains/losses relative to the size of future economy

5. estimates to IPCC2001

9. Stern scenario combinations