The social cost of carbon (SCC) is a crucial tool for economic analysis of climate policies. The SCC estimates the dollar value of reduced climate change damages associated with a one-metric-ton reduction in carbon dioxide (CO2) emissions. Although the conceptual basis, challenges, and merits of the SCC are well established, its use in government cost-benefit analysis (CBA) is relatively new. In light of challenges in constructing the SCC, its newness in government regulation, and the importance of updating, we propose an institutional process for regular SCC review and revision when used in government policy-making and suggest how scientists might contribute to improved SCC estimates.
Using and Improving the Social Cost of Carbon
Journal Article by William Pizer, Matthew Adler, Joseph E. Aldy, David Anthoff, Maureen L. Cropper, Kenneth Gillingham, Michael Greenstone, Brian Murray, Richard Newell, R. Richels, A. Rowell, S. Waldhoff, and Jonathan Wiener — Feb. 4, 2014View Journal Article
William A. Pizer
Joseph E. Aldy
Maureen L. Cropper
Richard G. Newell
President and CEO, Resources for the Future
Jonathan B. Wiener
Common Resources — Feb 13, 2020
Technology-Inclusive Climate Strategy: An Open Race with Many Winners
Making the case for welcoming a range of potential solutions to tackle the global climate challenge while meeting the world’s energy and economic needs.
On the Issues — Jan 17, 2020
Climate in the Democratic Debate, China’s Carbon Trading Breakthrough, and More
Connecting this week's environmental and energy news to RFF's economic research.
Explainer — Jan 16, 2020
How does discounting help decisionmakers understand the costs and benefits of choices and policies—and how does it apply to climate change?