Seven Recommendations for Pricing Greenhouse Gas Emissions

This journal article features seven recommendations for improving estimates of the social cost of greenhouse gas emissions.

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Oct. 16, 2023


Arthur G. Fraas, John D. Graham, Kerry M. Krutilla, Randall Lutter, Jason Shogren, Linda Thunström, and W. Kip Viscusi


Journal Article in Journal of Benefit-Cost Analysis

Reading time

1 minute


The social cost of greenhouse gases is important in many regulatory impact analyses. However, calculations of the social cost of greenhouse gases are highly complex and periodically revisited. We offer seven recommendations to improve current estimates. These include recommendations to use both country-level and global measures of the social cost of greenhouse gases, to use country-specific values for monetizing climate damages, to represent uncertainties by reporting distributions instead of using only central values, and to conduct a temporal distributional analysis that shows the magnitudes of climate damages across generations. We also provide recommendations for the discount rates that should be used when estimating the social cost of greenhouse gases, and the appropriate discount rates for regulatory impact analyses that include the social cost of greenhouse gases.


John D Graham headshot.jpg

John D. Graham

Indiana University


Kerry M. Krutilla

Indiana University


Randall Lutter

Manhattan Institute

Jason Shogren.jpg

Jason Shogren

University of Wyoming

Linda Thunstrom headshot.jpg

Linda Thunström

University of Wyoming

W Kip Viscusi.jpg

W. Kip Viscusi

Vanderbilt University

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