Using the Social Cost of Carbon to Value Earth Observing Systems
Presented at the RFF-CMCC European Institute on Economics and the Environment.
Roger Cooke presents “Using the social cost of carbon to value Earth observing systems” at the RFF-CMCC European Institute on Economics and the Environment.
The goal of this study is to show how to quantify the benefits of accelerated learning about key parameters of the climatic system and use this knowledge to improve decision-making on climate policy. The US social cost of carbon (SCC) methodology is used in innovative ways to value new Earth observing systems (EOSs). The study departs from the strict US SCC methodology, and from previous work, in that net benefits are used instead of only damages to calculate the value of information of the enhanced systems. In other respects the US SCC methodology is followed closely. We compute the surfeit expected net benefits of learning the actionable information earlier, with the enhanced system, versus learning later with existing systems. The enhanced systems are designed to give reliable information about climate sensitivity on accelerated timescales relative to existing systems; therefore, the decision context stipulates that a global reduced emissions path would be deployed upon receiving suitable information on the rate of temperature rise with a suitable level of confidence. By placing the enhanced observing system in a decision context, the SCC enables valuing this system as a real option.
Media Highlight — Dec 7, 2022
E&E News: “How EPA Beat the White House on Estimating Climate Damage”
A highlight of RFF’s recent work on a new estimate of the social cost of carbon.
Media Highlight — Nov 17, 2022
Bloomberg: "'No Brainer' Methane Rule Touts New EPA Approach to Carbon Costs"
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Conferences — Dec 5, 2022
VALUABLES Consortium Capstone Celebration
A special event celebrating the VALUABLES community, spotlighting consortium results, and looking ahead to the future of socioeconomic assessment for Earth observations