Contact
+ 44 (0) 20 7955 7589
Email Simon Dietz
Department/Group
Management
- Future generations and social justice
- International environmental negotiations
- Modelling and decision making
- Private sector adaptation, risk and insurance
Prof. Simon Dietz
Co-Director
Since March 31 2011, Simon has been Co-Director of the Grantham Research Institute on Climate Change and the Environment, along with Professor Samuel Fankhauser.
Simon has worked at LSE since 2006, and joined the Grantham Research Institute upon its launch in 2008.
Simon also holds the following positions:
- Director of the Centre for Climate Change Economics and Policy;
- Professor at the Department of Geography and Environment at LSE;
- Co-Editor of the Journal of the Association of Environmental and Resource Economists
Background
Previously, Simon worked at the UK Treasury, as an economic adviser on the ‘The Stern Review on the Economics of Climate Change’.
Simon holds a starred first class honours degree in Environmental Science from the University of East Anglia, and Masters and PhD degrees from LSE, specialising in environmental policy and economics.
Research interests
- Decision-making under uncertainty;
- Questions of equity/social justice within and between generations;
- The links between economic growth and the environment;
- International environmental agreements.
Prospective PhD students
Simon welcomes enquiries from prospective PhD students with shared interests and a strong background in economics or related disciplines.
– Visit the ‘Study with us’ page for further information on applying to be a PhD student with us.
The risk of climate ruin
Oliver D. Bettis, Simon Dietz, and Nick G. Silver. 2006. Climatic Change DOI 10.1007/s10584-016-1846-3.
Domestic politics and the formation of international environmental agreements
We investigate the effect of domestic politics on international environmental policy by incorporating into a classic stage game of coalition formation the phenomenon of lobbying by special-interest groups. In … read more »
The endowment effect and environmental discounting
There is a considerable body of evidence from behavioural economics and contingent valuation showing that our preferences exhibit both reference dependence and loss aversion, a.k.a. the endowment effect. In this … read more »
Weighing the costs and benefits of climate change to our children
Our efforts to put the brakes on climate change or adapt to a warming climate present a fundamental tradeoff between costs borne today and benefits that accrue to the … read more »
The climate beta
This paper examines the question of whether fighting climate change has the additional advantage of reducing the aggregate risk borne by future generations. This raises the question of the ‘climate beta’, i.e. the elasticity of climate damages with respect to a change in aggregate consumption. read more »
Economic growth and agricultural land conversion under uncertain productivity improvements in agriculture
We study how stochasticity in the evolution of agricultural productivity interacts with economic and population growth, and the associated demand for food. We use a two-sector Schumpeterian model of growth, … read more »
The expansion of modern agriculture and global biodiversity decline: an integrated assessment
Modern agriculture relies on a small number of highly productive crops and its continued expansion has led to a significant loss of biodiversity. In this paper we consider the macroeconomic … read more »
Global population growth, technology and Malthusian constraints: a quantitative growth theoretic perspective
Global population growth, technology, and Malthusian constraints: a quantitative growth theoretic perspective read more »
‘Climate value at risk’ of global financial assets
Investors and financial regulators are increasingly aware of climate change risks. So far, most of the attention has fallen on whether controls on carbon emissions will strand the … read more »
The risk of climate ruin
How large a risk is society prepared to run with the climate system? This is a question of the utmost difficulty and it admits a variety of perspectives. In this … read more »
Spaces for Agreement: A Theory of Time-Stochastic Dominance and an Application to Climate Change
Many investments involve both a long time horizon and risky returns. Making investment decisions thus requires assumptions about time and risk preferences. Such assumptions are frequently contested, particularly in the … read more »
2015
Endogenous growth, convexity of damages and climate risk: how Nordhaus' framework supports deep cuts in carbon emissions
‘To slow or not to slow’ (Nordhaus, 1991) was the first economic appraisal of greenhouse gas emissions abatement and founded a large literature on a topic of worldwide importance. We offer our assessment of the original article and trace its legacy, in particular Nordhaus's later series of ‘DICE’ models. From this work, many have drawn the conclusion that an efficient global emissions abatement policy comprises modest and modestly increasing controls. We use DICE itself to provide an initial illustration that, if the analysis is extended to take more strongly into account three essential elements of the climate problem – the endogeneity of growth, the convexity of damage and climate risk – optimal policy comprises strong controls. read more »
2014
Climate change mitigation as catastrophic risk management
Since Nicholas Stern published his influential 'Review on the Economics of Climate Change' for the British government in 2006, economists have become increasingly interested in how the value of climate policy, especially the reduction of greenhouse gas emissions at the global level, depends on risk and uncertainty. New lines of research make the case that mitigating climate change is above all an exercise in catastrophic risk management. read more »
Handbook of Sustainable Development
This Handbook takes stock of progress made in our understanding of what sustainable development actually is and how it can be measured and achieved. read more »
Endogenous growth, convexity of damages and climate risk: how Nordhaus’ framework supports deep cuts in carbon emissions
Endogenous growth, convexity of damages and climate risk: how Nordhaus’ framework supports deep cuts in carbon emissions read more »
Adaptation to climate change and economic growth in developing countries
Published in: Environment and Development Economics. Vol 20, Issue 03, June 2015, pp 380 – 406. DOI: 10.1017/S1355770X14000692, Published online: 25 November 2014. Abstract Developing countries are vulnerable to the … read more »
2013
Benefit–cost analysis of non-marginal climate and energy projects
Conventional benefit–cost analysis incorporates the normally reasonable assumption that the policy or project under examination is marginal. Among the assumptions this entails is that the policy or project is … read more »
Spaces for agreement: a theory of Time-Stochastic Dominance
Many investments involve both a long time-horizon and risky returns. Making investment decisions thus requires assumptions about time and risk preferences. In the public sector in … read more »
Is there space for agreement on climate change? A non-parametric approach to policy evaluation
Economic evaluation of climate policy is notoriously dependent on assumptions about time and risk preferences, since reducing greenhouse gas emissions today has a highly uncertain pay-off, … read more »
Tall tales and fat tails: the science and economics of extreme warming
It has recently been highlighted that the economic value of climate change mitigation depends sensitively on the slim possibility of extreme warming. This insight has been obtained through a … read more »
Scientific ambiguity and climate policy
Environmental and Resource Economics. Economic evaluation of climate policy traditionally treats uncertainty by appealing to expected utility theory. read more »
Vulnerability to weather disasters: the choice of coping strategies in rural Uganda
When a natural disaster hits, the affected households try to cope with its impacts. A variety of coping strategies, from reducing current consumption to disposing of productive assets, may … read more »
2012
Ambiguity and insurance: robust capital requirements and premiums
Many insurance and reinsurance contracts are contingent on events such as hurricanes, terrorist attacks or political upheavals whose probabilities are not known with precision. There is … read more »
Vulnerability to weather disasters: the choice of coping strategies in rural Uganda
When a natural disaster hits, the affected households try to cope with its impacts. A variety of coping strategies may be employed, from reducing current consumption … read more »
Domestic politics and the formation of international environmental agreements
The theory of international environmental agreements overwhelmingly assumes that governments engage as unitary agents. Each government makes choices based on benefits and costs that are simple … read more »
The treatment of risk and uncertainty in the US Social Cost of Carbon for Regulatory Impact Analysis
This note considers the treatment of risk and uncertainty in the recently established ‘social cost of carbon’ (SCC) for analysis of federal regulations in the United States. It argues … read more »
Climate policy under sustainable discounted utilitarianism
Empirical evaluation of policies to mitigate climate change has been largely confined to the application of discounted utilitarianism (DU). DU is controversial, both due to the conditions through which … read more »
2011
High impact, low probability? An empirical analysis of risk in the economics of climate change
To what extent does economic analysis of climate change depend on low-probability, high-impact events? This question has received a great deal of attention lately, with the contention increasingly made … read more »
A representation result for choice under conscious unawareness
There are many examples in policy making, investment and day-to-day life where the set of contingencies the decision maker can conceive of does not resolve all … read more »
The treatment of risk and uncertainty in the US Social Cost of Carbon for Regulatory Impact Analysis
This note considers the treatment of risk and uncertainty in the recently established ‘social cost of carbon’ (SCC) for analysis of federal regulations in the United … read more »
Climate policy under sustainable discounted utilitarianism
Empirical evaluation of policies to mitigate climate change has been largely confined to the application of discounted utilitarianism (DU). DU is controversial, both due to the … read more »
The Political Economy of the Environment: an Interdisciplinary Approach
Dietz, S., Michie, J., and Oughton, C., editors. 2011. Routledge, Abingdon.
Strategic appraisal of environmental risks: a contrast between the UK's Stern Review on the Economics of Climate Change and its Committee on Radioactive Waste Management
In this article, we compare two high-profile strategic policy reviews undertaken for the U.K. government on environmental risks: radioactive waste management and climate change. These reviews took very different … read more »
2010
Environmental prices, uncertainty and learning
There is an increasing demand for putting a shadow price on the environment to guide public policy and incentivize private behaviour. In practice, setting that price can be extremely … read more »
The equity-efficiency trade-off environmental policy: evidence from stated preferences
The design of environmental policy raises several equity issues, in particular the distribution of benefits and costs. At the same time, it has often been argued that there is … read more »
On non-marginal cost-benefit analysis
Conventional cost-benefit analysis incorporates the normally reasonable assumption that the policy or project under examination is marginal in the sense that it will not significantly change … read more »
2009
From efficiency to justice: utility as the informational basis of climate change strategies, and some alternatives
The aim of this paper is to consider, from an ethical point of view, the role that economics should play in evaluating climate change strategies. Economics has … read more »
High impact, low probability? An empirical analysis of risk in the economics of climate change
To what extent does economic analysis of climate change depend on low-probability, high-impact events? This question has received a great deal of attention lately, with the … read more »
New frontiers in the economics of climate change
New frontiers in the economics of climate change read more »
Strategic appraisal of environmental risks: a contrast between the UK's Stern Review on The Economics of Climate Change and its Committee on Radioactive Waste Management
We compare two strategic policy reviews undertaken for the UK Government on environmental issues: radioactive waste management and climate change. These reviews took very different forms, … read more »
Siblings, not triplets: social preferences for risk, inequality and time in discounting climate change
Arguments about the appropriate discount rate often start by assuming a Utilitarian social welfare function with isoelastic utility, in which the consumption discount rate is a function of the … read more »
On the timing of greenhouse gas emissions reductions: a final rejoinder to the symposium on "The Economics of Climate Change: The Stern Review and its Critics
In this final rejoinder to the symposium on “The Economics of Climate Change: The Stern Review and Its Critics,” we respond to comments published in the last issue of this journal … read more »
Economics and the governance of sustainable development. Governing Sustainability: essays in honour of Tim O'Riordan
In this chapter we assess the role of economics in governance for sustainable development. Firstly, we ask how has the‘mainstream’ environmental and resource economics paradigm helped us understand the … read more »
2008
Economics, ethics and climate change. Arguments for a Better World
There may never have been an instance of environmental pollution to challenge our powers of analysis and evaluation quite like climate change. Global in its causes and consequences, spanning … read more »
The effects of climate change on financial stability, with particular reference to Sweden
This report is part of Finansinspektionen´s (FI’s) response to a request from the Swedish government to “Analyse and in a written report outline how environmental and climate change may affect … read more »
2015
Critical minerals today and in 2030: an analysis of OECD countries
This report identifies around 12 to 20 minerals or mineral groups, which are critical in the OECD today. read more »
2014
Non-economic losses in the context of the UNFCCC work programme on loss and damage
Sam Fankhauser, Simon Dietz and Phillip Gradwell
2010
Adaptation in the UK: a decision-making process
Climate change is one of the most significant challenges we face. It will impact the UK population, environment and economy in many ways; including health, water supplies, food, … read more »
2007
Right for the Right Reasons: A Final Rejoinder on the Stern Review
Simon Dietz, Dennis Anderson, Nicholas Stern, Chris Taylor & Dimitri Zenghelis. World Economics 8.2, pp.229-258, 2007 – Link to publisher
Reflections on the Stern Review: A Robust Case for Strong Action to Reduce the Risks of Climate Change
Simon Dietz, Chris Hope, Nicholas Stern & Dimitri Zenghelis. World Economics 8.1, pp.121-168, 2007 – Link to publisher
RI Europe 2016: Ten-point set of voluntary standards for ESG data launched
How can investors assess companies’ low carbon strategies? Are companies making a sufficient contribution to the goals of a low carbon economy? The Transition Pathway Initiative will help investors address these questions. read more »
Sovereign funds ignore climate risk
Financial Times, 1 May
The Data Says Climate Change Could Cost Investors Trillions
Harvard Business Review, 14 April
Global warming risks trillions: Study
CNBC, 5 April
Climate change could cost the world £1.8tn if left unchecked
The Week, 5 April
Climate change will wipe $2.5tn off global financial assets: study
Guardian, 4 April
2014
Outstanding publication award
A paper by Antony Millner (Research Fellow ) and Simon Dietz (Co-Director) of the Grantham Research Institute, and Geoffrey Heal from Columbia University, has won the EAERE Award for outstanding … read more »
Models 'grossly underestimate' costs of global warming, Nicholas Stern says
Existing economic models “grossly underestimate” the costs of global warming, undermining the urgency for deep cuts in greenhouse gas emissions, according to a new paper by leading UK climate change … read more »
Climate change will ‘cost world far more than estimated’
Lord Stern says current models do not adequately reflect the science and the impact on global economies The Independent
2012
Why do we see unilateral action on climate change?
In keeping with expectations, recent multilateral climate change talks in Doha have achieved very little. Yet, the good news is that unilateral action is on the up. This column argues … read more »
Simon Dietz delivers lecture on the future of negotiating climate change
Dr. Simon Dietz, Co-Director of the Grantham Research Institute on Climate Change and the Environment at the London School of Economics and Political Science delivered a lecture on the future … read more »
2011
Grantham staff receive 'Best Paper Award 2011' by the Journal Risk Analysis
Simon Dietz and Alec Morton have written one of 2011's best research articles, according to the Society for Risk Analysis, for their published paper 'Strategic appraisal of environmental risks: a contrast between the UK's Stern Review on the Economics of Climate Change and its Committee on Radioactive Waste Management'. read more »
Simon Dietz contributes a section in new report on climate risks and carbon prices
Dr Simon Dietz of the Grantham Research Institute has contributed a section on 'Revising the social cost of carbon' in a new report on 'Climate risks and carbon prices: revising the social cost of carbon', published by the E3 Network read more »
2010
Joint Critique of Bjørn Lomborg's Pronouncements on Climate Change
The Guardian, 2 September 2010
Still wary of Bjørn Lomborg's pronouncements on climate change
Bjørn Lomborg’s change of mind on climate change is welcome, and some of his suggestions good, but your glowing review of his new book failed to examine deeply his shift … read more »
Ambiguity is another reason to mitigate climate change
The answers to “How much should people sacrifice today for the benefit of those living several decades from now?” vary widely. This column suggests that people’s distaste for uncertainty – … read more »
Public lecture | Growth and Sustainability: 10 years on from the Stern Review
Nicholas Stern considers what we know about innovation, investment, cities and the global agenda, a decade after publication of The Stern Review. read more »
Grantham Seminar | How a minimum carbon price commitment might help to internalize the global warming externality
Grantham Seminar introduced and chaired by Prof. Simon Dietz, Co-Director of the Grantham Research Institute Prof. Martin L. Weitzman, Professor of Economics at Harvard University, will be the speaker for … read more »
LSE Executive Summer School | Climate change: economics and governance
This multi-disciplinary five-day course provides an in-depth overview of the economics and governance of climate change, and the risks and opportunities they present for a range of organisations. The course … read more »
2015
Public lecture | Cooperation in the global commons
This talk will explore common features of ecological and economic systems, particularly in relation to the evolution of cooperation. read more »
LSE Executive Summer School | Climate change: economics and governance
This multi-disciplinary five-day course provides an in-depth overview of the economics and governance of climate change, and the risks and opportunities they present for a range of organisations. read more »
2014
Climate Change: Economics and Governance
This multi-disciplinary five-day course provides an in-depth overview of the economics and governance of climate change read more »
Risk Management and Climate Change
event was hosted by the ESRC Centre for Climate Change Economics and Policy and the Grantham Research Institute. A series of presentations, chaired by Nick Silver, (Director, Callund Consulting and … read more »
2013
Dan O’Neill - Enough is enough
LSE Students Union public lecture: Dan O’Neill spoke about the ideas in his new book, ‘Enough Is Enough: building a sustainable economy in a world of finite resources’. He explained … read more »
Spaces for Agreement: a theory of time-stochastic dominance and an application to climate change
Part of the Grantham Workshop: a public forum for researchers at the Grantham Research Institute on Climate Change and the Environment, and associates, to exchange ideas and get feedback on … read more »
2010
Sir David King - Time for a New Policy Paradigm: resources, technology and human well-being
LSE Sustainability in Practice lecture, co-hosted by the Grantham Research Institute on Climate Change and the Environment Chair: Dr Simon Dietz, lecturer in environmental policy and deputy director of the … read more »
2009
Controversies in the Economics of Climate Change
The Stern Review stirred up the controversy surrounding the economics of climate change. This lecture reviewed these issues and gave an assessment of the debate. Chair:Dr Simon Dietz, deputy director … read more »
Nicholas Stern - A Blueprint for a Safer Planet
Nicholas Stern presented an outline of his new book, A Blueprint for a Safer Planet, which described how to manage climate change while creating a new era of growth and … read more »
2008
LSE Space for Thought lecture series: Seven Years to Save the Planet?
The Space for Thought lecture series celebrated the completion of the New Academic Building and was supported by the LSE Annual Fund. Chair: Dr Simon Dietz, deputy director at the … read more »
2014
Handbook of Sustainable Development
This Handbook takes stock of progress made in our understanding of what sustainable development actually is and how it can be measured and achieved. read more »
2011
The Political Economy of the Environment: an Interdisciplinary Approach
Dietz, S., Michie, J., and Oughton, C., editors. 2011. Routledge, Abingdon.
