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
Media Highlight — May 31, 2019
"The Number with the Power to Halt the Climate Crisis"
Journal Article — Mar 29, 2019
Monetizing the Value of Measurements of Equilibrium Climate Sensitivity Using the Social Cost of Carbon
This study shows how real options theory in combination with the social cost of carbon may help to calculate the value of information regarding equilibrium climate sensitivity and estimate the relative advantages of two different Earth Observing Systems.
Webinar — Jan 17, 2019
Using the Social Cost of Carbon to Value Earth Observing Systems
Presented at the RFF-CMCC European Institute