A report released on 30 October 2006 by economist Nicholas Stern for the UK Government, which discusses the effect of global warming on the world economy. Although not the first economic report on climate change, it is significant as the largest and most widely known and discussed report of its kind.
Its main conclusion is that the benefits of strong, early action on climate change considerably outweigh the costs. It proposes that 1% of global gross domestic product (GDP) per annum is required to be invested in order to avoid the
worst effects of climate change, and that failure to do so could risk global GDP being up to 20% lower than it otherwise might be. The Review states that climate change is the greatest and widest-ranging market failure ever seen, presenting a unique challenge for economics. It provides prescriptions, including environmental taxes, to minimise the economic and social disruptions.