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.
Press Release — May 8, 2019
RFF Assesses a New Climate Bill that Sets a Clean Energy Standard
Issue Brief — May 8, 2019
Projected Effects of the Clean Energy Standard Act of 2019
RFF researchers modeled the effects of Sen. Tina Smith and Rep. Ben Ray Luján's Clean Energy Standard Act of 2019, which would require retail electricity suppliers to sell an increasing amount of clean energy over time.
Press Release — Apr 11, 2019