The Growth Story of the 21st Century | LSE Press

<!-- CLOCKSS system has permission to ingest, preserve, and serve this Archival Unit --> <p style="color:red"><b>Read online or download for free</b></p> <p>The world stands at a crossroads. The next decade will determine whether we avoid climate, biodiversity, and economic catastrophe – or unlock a new era of sustainable, resilient, and inclusive growth. <i>The Growth Story of the 21st Century</i> challenges the outdated idea that we must choose between climate action and development. Instead, it presents a compelling case for a transformation that delivers both prosperity and a healthier planet.</p><p>Drawing on economics, finance, policy, politics, and behavioural science, Nicholas Stern explores why this transformation is essential, what it entails, and how we can achieve it. He revisits the insights of the Stern Review two decades on and sets out a new research agenda for economics and the social sciences.</p><p>This is a story of optimism – about how rapid technological advances, including digitisation and AI, can drive change at scale. But it does not shy away from the immense challenges ahead. With clear and practical strategies for national and international action, this book is a call to leaders, businesses, and individuals alike: the future is in our hands, and delay is the riskiest option of all.</p> <details><summary class="plausible-event-name=Praise+TGS"><b><span style="font-size: 18px;">Click here to read praise for </span><i><span style="font-size: 18px;">The Growth Story of the 21st Century</span></i></b></summary> <p>"Nick Stern is an internationally acclaimed development economist who has become the leading figure in climate economics. This book combines rigorous analysis with a positive and optimistic prospectus for action on climate change."</p> <p>— <b>Rt Hon Sir Vincent Cable,</b> Former UK Cabinet Minister and Party Leader, Professor in Practice, LSE</p><hr><p>"Our only chance for serious climate action is for policy makers to see it not as a cost and a shackle on their economies, but as an opportunity to devise a more direct, as well as more sustainable, path to prosperity. No-one has made this case more fully and more convincingly than Nick Stern. This is a book that should be on the desk of every policy maker."</p><p>—&nbsp;<b>Dani Rodrik,</b>&nbsp;Professor of International Political Economy, the John F. Kennedy School of Government, Harvard University</p><hr><p>"A comprehensive analysis of the economics of climate change from one of the world's most compelling advocates for action. At a critical moment and combining academic rigour with policy practicality, Nick Stern shows how innovation, investment and international cooperation can create a sustainable future for all."</p><p>— <b>Baroness Minouche Shafik</b>, House of Lords and former President, LSE</p><hr><p>"As the world order becomes world disorder and the climate and biodiversity crises deepen, we are lucky that Nick Stern has delivered this tour de force, a convincing call for action. His message is at the same time sobering and optimistic. Yes, the risks remain immense and must not be ignored. But yes, Nick tells us, the right responses to these crises are available and can also deliver a new, fair and sustainable growth story."</p><p>—&nbsp;<b>Arminio Fraga</b>, Investor and Board Member, re.green and former President of the Central Bank of Brazil</p><hr><p>"Twenty years after the Stern Review (2006), Nick Stern offers an updated view of a sustainable development model for the 21st century, A must-read!"</p><p>— <b>Thomas Piketty</b>, author of Capital in the Twenty-First Century and Professor of Economics, School for Advanced Studies in the Social Sciences (EHESS)</p><hr><p>“Nicholas Stern once again provides the intellectual depth and rigorous analysis to inform sound policy and global action on development and climate. <i>The Growth Story of the 21st Century</i> is a compelling and optimistic roadmap for transforming our economies to respond to the urgent challenges of climate change while fostering sustainable, inclusive, and resilient growth. Drawing on his unparalleled expertise across economics, policy, and international development, Stern convincingly demonstrates that climate action and growth are not competing agendas but mutually reinforcing imperatives.”</p><p>— <b>Mahmoud Mohieldin</b>, Development and International Finance Economist and the UN Special Envoy on Financing Sustainable Development</p><hr><p>“Starting with the Stern Review, Nick has been the most important analyst, advisor, and public figure addressing this overwhelmingly important issue. This book is a worthy continuation and expansion of his earlier writings about this vital issue.”</p><p>— <b>Peter A. Diamond</b>, Institute Professor Emeritus, Massachusetts Institute of Technology (MIT) and recipient of the Nobel Prize in Economic Sciences</p> <hr><p>"This book provides the Stern warning: no more dirty, destructive growth but instead growth that enhances the wellbeing of all of us and our planet. Governments around the world need to understand that clean, sustainable growth is the answer to our climate change and biodiversity problems. This is the Stern Review 2.0."</p><p>— <b>Rt Hon Lord Gus O'Donnell,</b>&nbsp;Former UK Cabinet Secretary</p> <hr><p>“An inescapable read combining domain expertise articulating the growth story of the 21st century. No publication has so insightfully interwoven growth and climate or focused so clearly on the false choice between the two. This book sharpens focus on our existential crisis and underpins the market logic that climate and growth are two sides of the same coin. Deeply enriching, with unrivalled analytical precision and simplicity of expression.”</p><p>— <b>N.K. Singh</b>, Former Parliamentarian, Economist and President of the Institute of Economic Growth</p> <hr><p>“Nicholas Stern’s work is a courageous defence of optimism at a time when fear and fatalism threaten to paralyse progress. The green transition is not only compatible with prosperity but essential to it - to build fairer economies and renew confidence in collective progress. This is economics for hope. Sound data and analysis, rigorous, realistic, and profoundly human proposals. A book to restore optimism, backed by courage and reason, a book that claims that we can still change the world.”</p><p>— <b>Teresa Ribera</b>, First Executive Vice-President for Clean, Just and Competitive Transition of the European Commission</p> <hr><p>"Nick Stern's latest contribution to climate action draws on what he and we have learnt since the Paris agreement: solutions are there and cooperation is now the name of the game"</p><p>— <b>Pascal Lamy</b>, Vice President, Paris Peace Forum and Jacques Delors-Friends of Europe Foundation, former Director-General of the World Trade Organization</p> <hr><p>“The debates on mitigation and adaptation to climate change would result in decisive global actions if those in politics, business and finance read this book. It is a reminder that acting has significant costs but also far greater benefits for humanity and for commerce. I strongly commend its pragmatism and optimistic viewpoint."</p><p>— <b>Lord John Browne</b>, Co-founder and Chairman of BeyondNetZero, former CEO of BP</p> <hr><p>"At a time when too many see climate action as a burden, Nicholas Stern delivers a vital reminder: climate policy is not a brake, but a catalyst for economic growth and development. By putting carbon dioxide removals and biodiversity protection at the core of the growth agenda, he maps out how integrated action can unlock sustainable prosperity – and why delay is the most expensive choice of all."</p><p>— <b>Ottmar Edenhofer</b>, Director and Chief Economist of the Potsdam Institute for Climate Impact Research, Professor for The Economics and Politics of Climate Change at the Technische Universität Berlin</p> <hr><p>"Lord Nicholas Stern's <i>The Growth Story of the 21st Century</i> masterfully weaves together economics, policy, and human behaviour to eviscerate the myth that prosperity and climate action are opposing goals. He reveals instead that they are mutually reinforcing necessities. Simultaneously visionary and practical, <i>The Growth Story of the 21st Century</i> is a roadmap for the convergence of innovation and leadership to drive a just and sustainable outcome . Essential reading for anyone craving hope and reality in a volatile time when an existential challenge can also be our greatest opportunity."</p><p>— <b>John Kerry</b>, Co-Executive Chairman, Galvanize Climate Solutions, 68th U.S. Secretary of State and former Special Presidential Envoy for Climate</p> <hr><p>“Nick Stern has an amazing range of expertise and mastery over all issues of economic growth and its limitations – from abstract theoretical models to empirical research and policy discussions. This book shows him at his best in all these matters. Specialists will respect, and laypersons will understand and learn from, the substance and the style of his writing.”</p><p>— <b>Avinash Dixit</b>, Sherrerd University Professor, Emeritus, Princeton University</p> <hr><p>"In this important book, Nicholas Stern has built upon his distinguished past work on climate to offer a story of achievement, hope and danger. The achievement is a technological revolution that has turned the once-uncertain prospects of cheap, abundant and clean energy into a reality. The hope is of a future that offers prosperity and a stable environment to all. The danger is that human folly will reject the achievement and ruin the hope."</p><p>— <b>Martin Wolf</b>, Chief Economics Commentator, the Financial Times</p> <hr><p>“This is a book the UK and the world needs, and Nick Stern is the person to write it. He understands the increasing danger of global warming to humanity, and using convincing argument and evidence explains how it can be dealt with whilst still delivering growth and development, countering those that claim otherwise. It is an optimistic agenda, one we should all listen to, especially political leaders.”</p><p>— <b>Paul Nurse</b>, OM CH FRS, former Director, Francis Crick Institute and recipient of the Nobel Prize in Physiology or Medicine</p> <hr><p>“A masterful blend of economics, science and moral urgency that shows that climate action is not a cost but the greatest engine of prosperity of our times. Clear-eyed and pragmatic, it maps a realistic path from crisis to renewal through investment, innovation and international cooperation. A hopeful work that redefines growth for a sustainable age.”</p><p>— <b>Peter Frankopan</b>, Professor of Global History, Oxford University</p> <hr><p>"Nick Stern has worked tirelessly to sensitise policy makers about the existential threat posed by climate change and the need for developed and developing countries to act in concert to counter it. He has also consistently pushed the idea that developed countries must help developing countries to bear the additional costs involved. In this book he argues persuasively that growth and managing climate change are not alternative strategies. There is no way of achieving sustainable growth in the 21st century if the need to manage climate change is ignored. Fortunately, technological change is making it possible to combine both objectives. The book is particularly timely because it comes at a time when the global consensus, which took so long to build is in serious danger of fraying." </p><p>— <b>Montek Singh Ahluwalia</b>, Former Deputy Chairman of the Indian Planning Commission</p> <hr><p>“Nick Stern is one of the world's most influential voices on climate change and his analysis never disappoints. In this much-needed book he shows that it is not a trade off between cheap or clean energy - smart policies to make it cleaner will also bring down cost."</p><p>— <b>Rt Hon Sir Jeremy Hunt</b>, Former UK Chancellor</p> <hr><p>“In this magisterial book, Nick Stern effectively demolishes the trope that it is ‘climate versus development’. He provides a comprehensive argument that the prosperity of the world is contingent on widespread and urgent climate action, in tandem with aligned technology and incentives. This is a book we have been waiting for!"</p><p>— <b>Nandan Nilekani</b>, Co-founder and Chairman, Infosys, and Founding Chairman UIDAI</p> <hr><p>““Nick Stern has once again redefined the conversation on climate and the economy. This book shows, with clarity and a dose of optimism, that the path to net zero is also the path to shared prosperity – if we have the courage and foresight to act at scale.”</p><p>— <b>Laurence Tubiana</b>, CEO of the European Climate Foundation</p> <hr><p>"This latest book by Nick Stern brilliantly advances the insights he first outlined in the famous Stern Review, demonstrating now that full-throttle action to confront climate change offers an extraordinary opportunity to produce growth, sustainable development and a livable world."</p><p>— <b>Todd Stern</b>, Former United States Special Envoy for Climate Change</p> <hr><p>"This book is most welcome at a time when climate policies are being denounced as being overly punitive by some, meanwhile economic growth and climate action are viewed as being mutually incompatible by others. Nick Stern does a fantastic job at explaining why and how climate action and economic growth can be reconciled, why delayed action is dangerous, but at the same time why a well-defined and non-punitive path exists towards a new growth model which delivers both, prosperity and improved health and well-being. This is an absolute must-read for all economic scholars and policy makers working on climate and on economic development."</p><p>— <b>Philippe Aghion</b>, Professor, Collège de France and recipient of the Nobel Prize in Economic Sciences</p> <hr><p>“Nicholas Stern argues powerfully that the large-scale investment and innovation necessary to reach net-zero emissions can create a new kind of growth for the 21st century – one that is sustainable, resilient and inclusive. This book is essential reading for anyone interested in a more sustainable future.”</p><p>— <b>Christine Lagarde</b>, President of the European Central Bank</p> <hr><p>“Just as the Stern Review so clearly outlined the economic disaster awaiting the world if it failed to confront the climate crisis, in The Growth Story of the 21st Century, Lord Nicholas Stern articulates the incredible opportunity for global development enabled by climate action. With clear-eyed analysis and robust documentation, Lord Stern outlines a path for bold leadership from leaders in government, the private sector, and civil society, while fully dismantling the myth that development and decarbonization are incompatible.”</p><p>— <b>Al Gore</b>, Former Vice President of the United States and Environmentalist</p> <hr><p>“This book makes clear that investing in climate resilience is not a cost but a catalyst for innovation, jobs, and justice. It captures the spirit of a new growth story, one that leaves no one behind.”</p><p>— <b>Ana Toni</b>, CEO of COP30</p> <hr><p>“<i>The Growth Story for the 21st Century: The Economics and Opportunity of Climate Action</i> is an important work. Nick Stern shows clearly how climate action serves as a driver of economic expansion and highlights the role of technology in addressing global challenges. The book makes plain that a world focused on innovation will create a more prosperous and sustainable future for everyone.”</p><p>— <b>Ruth Porat</b>, President &amp; Chief Investment Officer, Alphabet and Google</p> </details>

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