This special issue of Environmental and Resource Economics was originally intended to be an 'adversarial collaboration' between an author of the Stern Review on the Economics of Climate Change (SD, contributing to Stern, 2007), and a critic (DJM, in Maddison, 2007). However, it is testament to the vitality of the discipline that our agenda for this issue has moved on. Rather than convening a symposium on the merits of the Stern Review (of which there have been several, in for instance Climatic Change, the Journal of Economic Literature, the Review of Environmental Economics and Policy, and World Economics), we collect together what are in our view some of the best examples of new economic research on climate change. Taken together, they look beyond the debate about the Stern Review and offer important new insights for the design of future policy.

While debates over the consequences of climate change are often pessimistic, historical data from the past two centuries indicate many viable opportunities for responding to potential changes. This volume takes a close look at the ways in which economies—particularly that of the United States—have adjusted to the challenges climate change poses, including institutional features that help insulate the economy from shocks, new crop varieties, irrigation, flood control, and ways of extending cultivation to new geographic areas. These innovations indicate that people and economies have considerable capacity to acclimate, especially when private gains complement public benefits. Options for adjusting to climate change abound, and with improved communication and the emergence of new information and technologies, the potential for adaptation will be even greater in the future.

Sovereign wealth funds (SWFs) can be effective tools for national resources revenue management. These state-owned investments, funded by commodity exports, foreign exchange reserves, or other national assets, are adaptable to the challenges posed by financial shocks and have been successfully employed in an increasing number of countries. The number of SWFs continues to grow, with the largest funds managing trillions of dollars in assets among them. However, given the significant variations among SWFs, it can be difficult to compare funds that differ in size, scope, and mandate. This book provides a sorely needed practical look at how these funds work—and how they should work. The New Frontiers of Sovereign Investment combines the insights and experience of academic economists and practitioners from several funds to survey a diverse financial landscape and establish the challenging topical questions facing a broad range of SWFs today: Should they serve both economic development and financial returns, and how? Will responsible investment enhance long-term returns? How can fiscal rules for SWFs be improved to meet emerging economic challenges? The book considers these questions as they apply to both long-established and newer SWFs. Featuring contributions from sovereign wealth practitioners from Alberta's AIMCo, the Nigerian Sovereign Investment Authority, and the New Zealand Superannuation Fund, as well as analysis by scholars at the forefront of sovereign investment, this volume provides timely and much-needed information on these rapidly evolving institutions.

Independent, rigorous and comprehensive analysis of the economic aspects of climate change.